Special triangle strategy with 21% gain CNAT

So why CNAT? Well, as you can see there was pre-market action which got my attention first. The triangle started to form.  Not every triangle is built the same way.  This one got my attention because the VWAP(pink), 8EMA(blue), and 20EMA(red) is right at the make or break point with low Risk and Reward. What happens if the stock moves above the VWAP?

 The shorts are force to cover and there will be a pop in the stock to start it off. The MACD cross happened too. In which, the blue starts to separate from the yellow to show a really bullish sign.  I like the Blue to be vertically up. That is another reason it caught my eyes. Volume was coming in which showed me people were buying and covering.

My stop was right below the triangle with proper risk and reward. The MACD was moving up slowly which would help you stay in your position.  This will usually happen on news etc or the second day of the news etc. So, where will you take profit? You take profit when crosses just below the 5 min 8EMA. If the stock is moving up more vertically, you use the 1 minute 8MA because more than like it will pullback hard.  As you can see on this trade you would be able to ride the 8EMA up to the top with great profit. When you see it crossed the 5 minute 8EMA the MACD cross downwards that is a bearish sign some are taking profit.  I usually like the VIX low under 14 and SPY moving up to feel more comfortable and always draw Daily resistance and support to have an idea where the momentum might stop. Hope it helps someone.  Have a great day everyone.