FAZ: Ascending Triangle

From this morning;

""The FAZ once again is in jeopardy of going into freefall on the downside if Monday's 34.80 low gets taken down by very much..."."

The FAZ broke 34.80 in the early going, went into this Ascending Triangle, then broke down putting a target of 33.83 IN PLAY.

36.43 - (The more conservative of the 36.43-36.45 Highs of the pattern)

34.50 - Low of the pattern

36.43 - 34.50 = 1.93 points of downside from the breakdown, at 35.75.

35.75 - 1.93 = Target: 33.83 IN PLAY

On these pattern plays, try to structure a decent risk:reward, and if you're stopped out, STOP IT OUT.

In this one, the stop would be 36.46, a penny above the 36.43-36.45 highs of the Ascending Triangle. Entering at the 35.75 breakdown is a risk of $0.71 on the trade on a stop out. There was $1.93 to be had if the target gets MADE, so that's a risk:reward of just under 1:3.

After the breakdown, the FAZ tried to claw its way back inside the pattern, but when it failed, it went into a freefall decline, to 33.08, during which the 33.83 target got MADE.

That's the TWELFTH pattern target off the intraday charts that has gotten MADE in the past week, so there have been lots of opportunites to trade the FAZ, mostly on the downside. Jumping into to these ETFs without a plan can be very dangerous to your wealth. "Plan the trade, and trade the plan."