Potential BEARISH AB=CD in QQQ 1-hour chart
Hey all!
There is a potential AB = CD pattern formation in 1-hour QQQ chart. The pattern is still forming. The PRZ is between 294.55 and 295.09. There is a possible short if the price enters PRZ. Depending on your risk appetite, you can enter a short trade right after price enters the PRZ with a tight stop-loss or you can watch candle formations and look for a rejection around that level. Right now, the RSI doesn't show any divergence, but we are at the overbought terrirtory. If we get a divergence in the RSI, that will support the short trade. So, you should also watch RSI alongside the price.
If pattern becomes invalid there is a chance that it forms an extended ABCD. I'll be watching.
Have a great weekend!
There is a potential AB = CD pattern formation in 1-hour QQQ chart. The pattern is still forming. The PRZ is between 294.55 and 295.09. There is a possible short if the price enters PRZ. Depending on your risk appetite, you can enter a short trade right after price enters the PRZ with a tight stop-loss or you can watch candle formations and look for a rejection around that level. Right now, the RSI doesn't show any divergence, but we are at the overbought terrirtory. If we get a divergence in the RSI, that will support the short trade. So, you should also watch RSI alongside the price.
If pattern becomes invalid there is a chance that it forms an extended ABCD. I'll be watching.
Have a great weekend!
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.