$PENGU analysis!!

1. Ascending Triangle Pattern:

Formed when the resistance line (horizontal) at the top remains stable, while the support line (sloping up) shows a gradual increase in price.

This pattern is usually a continuation pattern, which means that the previous trend (in this case up) is likely to continue if the price manages to break through the resistance.

2. Support and Resistance:

Resistance is around 0.03650 (blue horizontal line).

Support is indicated by the upward sloping line (bottom blue line).

3. Potential Signal:

If the price breaks through the resistance with high volume, there is a possibility that the price will continue the uptrend.

Conversely, if the price breaks through the support line, it could be a sign of a trend reversal.

1. Determining a Valid Breakout

Breakout Confirmation:

Wait for the candle to close above the resistance line (0.03650).

Make sure there is an increase in volume to avoid false breakouts.

False Breakout:

If price only breaks through resistance but re-enters the pattern area, avoid taking a position.

2. Entry Strategy

Aggressive Entry:

Enter a position immediately after a breakout above 0.03650, especially if volume increases significantly.

Conservative Entry:

Wait for price to retest the resistance line (which becomes new support) after the breakout.

3. Stop Loss

Place a stop loss below the support line (around 0.03350 - 0.03400) to anticipate a trend reversal.

If using a retest, place the stop loss a few points below the retest area.

4. Take Profit

Use the distance from support to resistance to determine the profit target:

Target 1: 04250.

You can also use a minimum risk/reward ratio of 1:2 to maintain profits.

5. Risk Management

Use a maximum of 1-2% of total capital for each trade.

Don't forget to use position sizing according to your risk tolerance.

6. If Breakout Down

If support is broken (price drops below 0.03400), the pattern is invalid.

You can look for opportunities for short positions (sell) with new support targets.