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Just thought I'd post this up as I continue to look deeper into the SAS chart. Lines are supposed to be drawn across absolute highs and lows once she has (pardon the pun) rocketed at the start to the high so my last chart really was not as accurate as it should have been.. so I started again and went deeper.
As the pattern develops we don't know exactly where to draw the lines until time and price action occurs. We are provided better clues as time ticks by.
On the chart R1 (resistance) fails to be relevant anymore once the fakeout occurs on the high of the red candle.
R2 fails to be relevant once price breaks on the small green candle preceding the bigger green candle on a breakout. Nice buying if you had the trendline in place and was watching SAS.
That breakout ultimately fails however but in the process there is a new high price point established in creating a pattern extension into R3 resistance.
So going by shapes being created I guess you can argue solidly that R1 & R2 plus the ascending support line equals a Symmetrical Triangle Bullish Continuation Pattern. (Although there's not a lot of info to draw pattern conclusions from at R1 because we haven't established a legitimate support line yet.) Once R3 is plotted it starts to look more like an Ascending Triangle Bullish Continuation Pattern however as the descending resistance slope levels out.
Both are Bullish Continuation Patterns and from my understanding of the latter the strike rate of a positive result in breaking to the upside of this particular pattern when it eventuates) is just over 70%.
You can see the R2 Symmetrical pattern broke to the upside on high probability for reference.
So the pattern is extended and we need to keep a close watch on when price is approaching either R3 or the Ascending Support line.
When did the computer call the Symmetrical formation again? Can't remember..
Still learning as I go but this all seems legit to me lol
Sorry if it's all a bit rough on the old iPhone and if I've mucked anything up as I've only slept 3 hours with 4 yesterday.
So SAS according to pattern stats has roughly a 7/10 chance to break to the upside of the top line when whatever happens happens if you believe the shape resembles an Ascending Triangle Bullish Continuation Pattern.
*Thats great! But there's still a 3/10 chance it will fail and that's arguably more important at this point in time so don't get caught up in the hype just yet.. the coming sessions will become more and more important if SAS does not find buyer support and or drifts sideways for too long.
If any more betterer (as my missus would say) Chartists are out there I would love to hear feedback. Of course this is a forum so anybody is free to comment as really we all should be learning every day and multiple heads are better than one.
Again this is my interpretation and Not advice.
Cheers.
Boom.
