Ascending Triangles - Gotta love 'em!

[Melf Elf]

I'd like to see the March 1 gap from 3.49 get filled before a breakout, though.  Hate dem gaps left open, begging for a fill.

Scotsman,

ALTI turned around and went down and filled that 3.49 a couple of minutes before the bell.  I like that better.  We won't have to worry about it on a breakout.

[ScottishTrader]

And there you go!  Strange how these things happen, but the early action may bode well for another push upwards. 

Actually, having a look at the chart, ALTI provides a pretty good contrast for this who base triangles on closing prices and intraday highs.  I think that if you are basing your chart patterns on closing prices, you need confirmation that it has actually closed above upper resistance.  Today's action on ALTI is a perfect case in point.  Based on closing prices, ALTI looks to have key resistance at 3.75, which it broke above this morning and rallied up to 3.92.  HOD resistance sits at 3.98.  If we were to buy the break of 3.75 this morning thinking it was an ascending triangle breakout, okay we could have sold for a small profit, but more than likely we would be underwater now as the price spiked and rapidly came back down.  The previous spikes into this zone of resistance that have not held, and so a close in this area could be seen as indicative of an upward move.  But still, to be convinced that prices will not immediately retrace, ALTI needs to get above recent highs of 3.98 and hold it there.

Interestingly, the low of the day not only fillled the open gap, it looks to have perfectly tagged the new ascending trendline, suggesting that this should provide support, which looks to be rising at 2.67 cents/day (I think?)  I may consider a buy close to this trendline around 3.50, giving limited risk.  The alternative is to wait and buy on the break of $4, although a close above 3.75 may indicate it is getting ready to push further upwards.

[akclide]

Although it is a gaming stock and the industry is not doing so hot but charts look good what do you guys think

[Melf Elf]

Interestingly, the low of the day not only fillled the open gap, it looks to have perfectly tagged the new ascending trendline, suggesting that this should provide support, which looks to be rising at 2.67 cents/day (I think?)

Scotsman,

The ascending trendline was at 3.421 yesterday.  The slope is 0.02182, so the trendline will be at 3.443 today, less than a penny below yesterday's low.

I may consider a buy close to this trendline around 3.50, giving limited risk.

I might do the same.  I like low risk entries in the direction of the trend, which has turned up.  We've already got a bullish target of 4.47 IN PLAY from the January 17 breakout of the ending diagonal. 

Technically, I like the fact that MACD is doing the opposite of what VPHM did, if you read my post in that folder yesterday.  MACD is tagging its signal line from ABOVE it, and from ABOVE zero, and is poised to kick higher on a rally.

[Melf Elf]

ALTI - MACD

[Melf Elf]

what do you guys think

akclide,

It's not an Ascending Triangle, but applause for the effort.

Let's all walk through this one, because in learning why it isn't an Ascending Triangle, it might help us to learn what is an Ascending triangle.

1. The top of the pattern should be flat.  MGAM is exactly flat.  The highs both are 10.93.  So far, so good.

2. You need an ascending line that shows that buyers had to "pay up" at successively higher prices if they wanted to get into the stock.

Those two are the basic and key elements of an Ascending Triangle.   If you don't have them, you don't have an ascending triangle.

3. Start at the first high of 10.93.  The stock sells off to the first low, which is the first data point for the ascending line.

4. From that low, the stock goes back to the flat top of the pattern, at 10.93.  So far, so good.

5. On the next move down, the stock needs to make a "higher low," indicating that buyers had to "pay up" if they wanted the stock.

6. MGAM fails to be an Ascending Triangle right there.  It makes a "lower low."

7. To be an Ascending Triangle, it would look something like the GREEN trendline, and the price action would look something like the arrows that I put in.

8. The up trendline that you've drawn, acklide, is simply an up trendline connecting recent prices, but it doesn't make the overall pattern an Ascending Triangle.

What you've got looks more like a rectangle (blue lines).  You've got a breakout on weak volume (it was only 28% greater than average daily volume), but it's a breakout, nonetheless.  You would like to see more volume come in.

13.36 is IN PLAY, as long as the stock remains above the 10.93 breakout.  Good luck!

[ScottishTrader]

OK Melf Elf, I'm in ALTI at 3.51 - has tagged 3.45 twice this morning (yesterday's low), and I am looking for that trendline to continue to provide support.

Get out on a solid move below 3.45.

[akclide]

Thanks again Melf.I guess it will take sometime to absorb.

[Melf Elf]

OK Melf Elf, I'm in ALTI at 3.51 - has tagged 3.45 twice this morning (yesterday's low), and I am looking for that trendline to continue to provide support.

Get out on a solid move below 3.45.

Scotsman,

That's a nice trade.  Very good risk:reward.  

I put in a limit order in twice, one at 3.47, then the other at 3.49.   I want it cheap with a risk of no more than 2%  because I'm not sure if we have another move down to form what will finally be the ascending line.  

They immedidately moved the BID...ASK away from me on both orders.    

ALTI now is BID 3.54...ASK 3.55, so I cancelled my order.  I'm not going to fool with them.

Good luck, and you get an applause for working so hard to set up good risk:rewards.  You'll be rewarded for doing it, in the long run.

[Melf Elf]

Thanks again Melf.I guess it will take sometime to absorb.

acklide,

You're welcome, and it does take time, so be patient with it.  You're doing fine, and you'll keep learning with reading and practicing. 

[wrangler]

Here's a descending triangle that has been broken. I bought this yesterday @.64 and today it confirmed breakout.I'm hoping for the target price I showed on chart it might take a while to get there but the MACD will be the guide, as long as it show's a positive convergence and MACD black ine is above the MA line that is hold. It was under heavy accumilation yesterday and looks ready to run. What's everybody's thoughts on it.
Goodluck trading to all

[ScottishTrader]

Well it wasn't such a good risk/reward after all - got out late in the day after it broke 3.45 to the downside, I think at 3.39.  Pretty ugly really, and turned into a 5% loss for the day on ALTI (including commissions).  Nothing (except HOM) seems to be acting right in the markets today - HOM formed a nice little ascending triangle on the intraday, just below 6.00, broke out of that to test recent highs of 6.09.    Broke through that too, and rallied to close in the 6.20s.  Of course my money was languishingg in ALTI, but there you go.

Anyway, despite the small end of day rally in ALTI, I guess the ascending trendline is broken for now. euch

[Melf Elf]

Anyway, despite the small end of day rally in ALTI, I guess the ascending trendline is broken for now. euch

Scotsman,

Aw-w, dang it, I really was wanting to see you get rewarded for the nice way you structured that trade.  You definitely get an applause, even though it didn't work out.

Yeah, it closed below the ascending line by just a hair, so we'll have to do a re-draw when it bottoms.  Maybe at the Kumo (Cloud), the top of which is at 3.25, and currently rising a little.

I still want to watch ALTI because, after that bullish breakout in January, the current consolidation pattern still is suggestive of a bullish continuation. 

[Melf Elf]

Calven's MCU broke out of the Ascending Triangle this morning on the print of 1.73.  Target: 2.20 is IN PLAY. 

[statement00]

Hey guys, just scanning some stocks and found a couple short term possiblities.

1-MAG) Looks good, multiply hits on top and bottom.

2-SDRG) A BB, so I'm just watching since I don't usually mess with BB and pinks. Many hits on the 1.00 resistance. The one day that was above 1.00 was on news. Doesn't look as good as MAG, but I'm going to watch it just to study.