Reversal for Gold ( Right - Angled Ascending Broadening Wedge)
This right angled ascending broadening wedge is a downward reversal pattern. Its formed by two diverging lines, the support is the horizontal range low and the resistance is an oblique bullish one.
I am waiting for a short entry / long entry at the bottom of the range
traditional strategy:
Entry:Opening a short position at the support break
Stop loss:The stop loss is placed above the support
Objective:Theoretical objective of the pattern
Advantage:Minimum objective very often achieved (91% of cases)
Disadvantage:Pullbacks are common (72% of cases).It may therefore be wise to wait for the pullback to open a position
The aggressive strategy:
Entry:Opening a long position on the 3rd contact with the support
Stop loss:The stop loss is placed below the last lowest point
Objective:Opposite terminal of the triangle
Advantage:The amplitude of the movement will be significant in the event of a bounce towards the opposite terminal.Low risk
Disadvantage:More frequent bearish exits
I am waiting for a short entry / long entry at the bottom of the range
traditional strategy:
Entry:Opening a short position at the support break
Stop loss:The stop loss is placed above the support
Objective:Theoretical objective of the pattern
Advantage:Minimum objective very often achieved (91% of cases)
Disadvantage:Pullbacks are common (72% of cases).It may therefore be wise to wait for the pullback to open a position
The aggressive strategy:
Entry:Opening a long position on the 3rd contact with the support
Stop loss:The stop loss is placed below the last lowest point
Objective:Opposite terminal of the triangle
Advantage:The amplitude of the movement will be significant in the event of a bounce towards the opposite terminal.Low risk
Disadvantage:More frequent bearish exits
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.
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.