ETHEREUM CLASSIC MOVING IN ASCENDING CHANNEL!
Ethereum Classic has been moving in Ascending channel . Looking sweet to take in some long positions. I was about to post this last night, but got occupied in some important work. Since, then the price has appreciated by 6%.
The Risk/Reward ratio for this trade is: 4.61, it it manages to test the resistance line again.!
For those who don't know how to trade parallel channel , read on!
HOW TO TRADE ASCENDING CHANNEL:
Support and Resistance: A long position can be opened when a stock's price reaches the ascending channel’s lower trendline and exit the trade when price nears the upper channel.
A stop-loss order should be placed slightly below the lower trendline to prevent losses if the security’s price abruptly reverses. Traders who use this strategy should ensure there is enough distance between the pattern’s parallel lines to set an adequate risk/reward ratio.
Breakouts: Traders could buy a stock when it’s price breaks above the upper channel line of an ascending channel .
Breakdowns: Before traders take a short position when price breaks below the lower channel line of an ascending channel , they should look for other signs that show weakness in the pattern. Price failing to reach the upper trendline frequently is one such warning sign.
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