lowtrade

[lowtrade]

A fake out is always possible on any breakout. Especially if news generated. To reduce concern one can raise entry level above break resistance, to insure a solid break. Say .0036 top resistance, where previous candle bodies reached.

I do this often on the OTC. I look at the average daily price swings over a few weeks or month and using average swing to place my breakout entry, that much above break resistance. To protect against fake out.

Using that, it looks like 2 tics is about average and 2 tics above .0032 to .0036 top resistance. I would be comfortable there.

Another thing I should mention is the ascending triangle pattern itself is a sentiment indicator of over all retail expectations. As the lower trend line implies less and less negativity, building after 2 or 3 touches at top before breakout. Looking at resent volumes in the last wave up I notice much larger volumes on green days. So this 4th attempt has some good sentiment support behind it.