this chart is a perfect example of pattern trading and how to position yourself for a profitable trade, as you can see mid January we had a rising wedge pattern which everyone was ready to short because it was a bearish pattern, then it pumped and then formed into an ascending broadening wedge pattern, we then broke down from that and formed a descending broadening wedge pattern and then we reclaimed back inside of the ascending broadening wedge pattern which is a bearish pattern, and it finally broke down hard and we have formed a falling wedge which is a really bullish pattern but again we broke down from that due to the recent negative news happening in the market, then we formed a little descending channel (orange lines) followed by a W pattern which played out and we have got rejected on the 200EMA on the hourly time frame. We have reclaimed back inside of the falling wedge as long as we stay in there I DO see more upside, losing it can mean coming back down to the 200MA on the daily again.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.