Short Term Update: MtGox 3h chart

As you can see in this 3 hour chart, BTC/USD is forming an ascending triangle, usually forms during a trend as a continuation pattern (if broken to the upside). The pattern contains at least two higher lows and two highs at the same price level. When these points are connected, the lines converge as they are extended and the ascending triangle takes shape.

Regardless of the nature of the pattern, continuation or reversal, the direction of the next major move can only be determined after a valid breakout of the two trendlines.

It is possible also to project a price target in case of a break out, applying to the breakout level the widest vertical distance of the triangle, in this case 1.5$ added to 7.2$ give 8.7$ as a target.

Well, i dont think we are going to do a huge downside breakout, i stay with 5.5$ as possible downside target in case of a breakdown of the ascending trendline. Net volume activity is good, the total cumulative value of the net volume since the beginning of this pattern is +20600 btc, it means that there are more buyers then sellers up to now or, if you prefer, a positive money flow.


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