Quote:
Originally Posted by lewdog
All correct. The 30 minute chart makes it look more similar to a falling wedge but it’s still a stretch. Is there a name for this?
And yes, I’m being generous with pivot point too. Didn’t know how else to show/name a “change” in direction point. Trying to provide some basic guidance for these meme stock bros in here.
|
If I had to assign a pattern to it I would call it a flag because it is a fairly symmetrical pattern. I mean I guess depending on how you wanted to draw the lines it could be a wedge. But , imo, it's such a sharp pullback I would just call it a re-tracement and not overthink it too much.
I tend to not try to force a particular name to the proposed pattern because when it comes to trend line and support\resistance analysis it can all get very subjective. The important thing is to recognize a consolidation pattern in general.
But this particular chart is almost one for the text books if it holds. You have some classic teaching examples.
Breakout above resistance on the 5th attempt with high volume no less
Gap to the upside
Re-filling the gap
Returning to the resistance line which has now become support (assuming it holds)
That's a classic chart to teach many aspects of chart reading right there.