📉 Pattern Explanation:
A Rising Wedge pattern is forming after a sharp downward move, signaling a potential bearish continuation. The price action is squeezing within an upward-sloping wedge, characterized by higher highs and higher lows with diminishing momentum.
Converging Trendlines: The upper and lower trendlines of the wedge are converging, indicating decreasing bullish strength.
Volume (not shown): Typically volume declines within a rising wedge, adding to the bearish sentiment when the breakout occurs.
🎯 Trade Setup:
Entry: Consider a short position upon a confirmed breakdown below the lower wedge trendline.
Stop Loss: Placed just above the upper trendline resistance around $33.36579.
Target: Measured move suggests a target near previous support at $32.61000, with further extension possible toward $32.60251 (blue horizontal line).
📌 Price Levels:
Current Price: ~$33.17200
Stop Loss: $33.36579 (Marked on chart)
Target Zone: $32.61000 – $32.60251
🔍 Analysis Summary:
After a strong bearish impulse, the price is consolidating in a bearish rising wedge, often a continuation pattern in downtrends.
The setup favors a breakdown to continue the previous selling momentum.
Traders should watch for a candle close below the wedge support for confirmation.
⚠️ Risk Management:
As always, wait for confirmation to avoid false breakouts.
Use proper position sizing to manage risk based on account size and stop-loss distance.
A Rising Wedge pattern is forming after a sharp downward move, signaling a potential bearish continuation. The price action is squeezing within an upward-sloping wedge, characterized by higher highs and higher lows with diminishing momentum.
Converging Trendlines: The upper and lower trendlines of the wedge are converging, indicating decreasing bullish strength.
Volume (not shown): Typically volume declines within a rising wedge, adding to the bearish sentiment when the breakout occurs.
🎯 Trade Setup:
Entry: Consider a short position upon a confirmed breakdown below the lower wedge trendline.
Stop Loss: Placed just above the upper trendline resistance around $33.36579.
Target: Measured move suggests a target near previous support at $32.61000, with further extension possible toward $32.60251 (blue horizontal line).
📌 Price Levels:
Current Price: ~$33.17200
Stop Loss: $33.36579 (Marked on chart)
Target Zone: $32.61000 – $32.60251
🔍 Analysis Summary:
After a strong bearish impulse, the price is consolidating in a bearish rising wedge, often a continuation pattern in downtrends.
The setup favors a breakdown to continue the previous selling momentum.
Traders should watch for a candle close below the wedge support for confirmation.
⚠️ Risk Management:
As always, wait for confirmation to avoid false breakouts.
Use proper position sizing to manage risk based on account size and stop-loss distance.
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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.
Related publications
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.