Pattern Review for Descending Wedge OMG/USDT on 30m Timeframe.
Updated
Pattern Formation
The primary pattern formation observed in this chart is a descending wedge. The green dotted lines indicate the narrowing of price action, with lower highs and lower lows, which generally signal a potential bullish reversal.
Volume Profile Analysis
The yellow horizontal lines represent the volume point of control (VPOC) within the respective wedge formation. These lines show the price levels where the most volume has been traded, indicating strong support or resistance levels:
- The upper yellow line (around 0.34) aligns with the VPOC for the 240m wedge formation.
- The lower yellow line (around 0.33) aligns with the VPOC for the 120m wedge formation.
Price Action Analysis for the Right Side Charts
1. Top Right (1-month candle chart):
- The chart shows a significant downtrend, with red candles dominating the recent months. The last few months show some consolidation with alternating red and green candles, indicating a potential bottoming-out phase.
2. Mid Right (2-week candle chart):
- The 2-week chart also shows a clear downtrend. However, the recent green candle indicates a possible short-term reversal. There is a noticeable wick at the bottom of the current candle, showing buying interest at lower levels.
3. Bottom Right (weekly candle chart):
- The weekly chart displays a strong downtrend with a series of red candles. The current week shows a small green candle with long wicks on both sides, indicating indecision and potential reversal.
Possible Trade Based on Analysis
Given the descending wedge pattern, the volume profile analysis indicating strong support around 0.33, and the potential reversal signs in the right-side charts, a long trade could be considered:
Note: For educational purposes, not a financial advice. Always consider overall market conditions and set risk management strategies accordingly.
The primary pattern formation observed in this chart is a descending wedge. The green dotted lines indicate the narrowing of price action, with lower highs and lower lows, which generally signal a potential bullish reversal.
Volume Profile Analysis
The yellow horizontal lines represent the volume point of control (VPOC) within the respective wedge formation. These lines show the price levels where the most volume has been traded, indicating strong support or resistance levels:
- The upper yellow line (around 0.34) aligns with the VPOC for the 240m wedge formation.
- The lower yellow line (around 0.33) aligns with the VPOC for the 120m wedge formation.
Price Action Analysis for the Right Side Charts
1. Top Right (1-month candle chart):
- The chart shows a significant downtrend, with red candles dominating the recent months. The last few months show some consolidation with alternating red and green candles, indicating a potential bottoming-out phase.
2. Mid Right (2-week candle chart):
- The 2-week chart also shows a clear downtrend. However, the recent green candle indicates a possible short-term reversal. There is a noticeable wick at the bottom of the current candle, showing buying interest at lower levels.
3. Bottom Right (weekly candle chart):
- The weekly chart displays a strong downtrend with a series of red candles. The current week shows a small green candle with long wicks on both sides, indicating indecision and potential reversal.
Possible Trade Based on Analysis
Given the descending wedge pattern, the volume profile analysis indicating strong support around 0.33, and the potential reversal signs in the right-side charts, a long trade could be considered:
Note: For educational purposes, not a financial advice. Always consider overall market conditions and set risk management strategies accordingly.
Trade closed manually
Learning to trade and coding my strategies in Pine Script. Passing Prop Firms. DM me for any inquiries.
Buy me coffee at:
paypal : tabrejalam786007@gmail.com
BTC : 15zY6PUsrV55UQvcfaSqk5hJexKZAwhpcK
Buy me coffee at:
paypal : tabrejalam786007@gmail.com
BTC : 15zY6PUsrV55UQvcfaSqk5hJexKZAwhpcK
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.