USDTRY rising wedge and negative divergence
Updated
Negative divergence is observed since volume has not yet accompanied the upward movement in the currency. In this case, it will either be accompanied by an increase in volume or the weakening in the bullish stance which will potentially cause a broken trend. Rising wedge pattern is considered as one of the bearish reversal indicators. As the formation target, a reversal can be expected as much as the difference between the lower channel and the upper channel. In our example, the reversal potential is approximately 2.8 ₺ from the point where the channel breaks down.
Trade closed: target reached
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