BitcoinShort
BTC: Understanding Rising Wedges (Higher Probability Short Term)
Updated
Here is a suggested theory just based on a single technical pattern that we love to play within the larger pictures for the small scalps / swings. Exposing yourself for the trade is a whole different topic, and how to properly execute it is a strategy that I can't really go into clear detail due to the deep diversity of these patterns; however, as we can see from all of the rising wedges that I have drawn out, we can see that it has always led to a minimum of a 1-3% drop, and if the price is right, a larger percentage.
The Rising Wedge pattern forms when prices appear to spiral upward, with higher highs and higher lows creating two up-sloping trend lines that intersect to form a triangle. Unlike Ascending Triangle patterns, both lines need to have a distinct upward slope, with the bottom line having a steeper slope.
This pattern is commonly associated with directionless markets since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. There is a distinct possibility that market participants will sell out, and the price can move down with big volumes.
Entries range ANYYWHERE from:
Current price - $11,200
Anything above will be breaking structure and the continuation of a new bullish pattern.
As for the current price action, we can start looking for short positions just based on this theory alone. Remember, exposure to the market and also maximizing profits is extremely comprehensive and risk management is ALWAYS key.
Trade Safe.
X Force
The Rising Wedge pattern forms when prices appear to spiral upward, with higher highs and higher lows creating two up-sloping trend lines that intersect to form a triangle. Unlike Ascending Triangle patterns, both lines need to have a distinct upward slope, with the bottom line having a steeper slope.
This pattern is commonly associated with directionless markets since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. There is a distinct possibility that market participants will sell out, and the price can move down with big volumes.
Entries range ANYYWHERE from:
Current price - $11,200
Anything above will be breaking structure and the continuation of a new bullish pattern.
As for the current price action, we can start looking for short positions just based on this theory alone. Remember, exposure to the market and also maximizing profits is extremely comprehensive and risk management is ALWAYS key.
Trade Safe.
X Force
Trade closed: target reached
Played out perfectly. Congrats!
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