XBTUSD - Kraken - Falling Wedge for KRAKEN:XBTUSD by orangestar4aC

XBTUSD - Kraken - Falling Wedge

Falling wedge, plus Bullish divergence. Possible breakout.

Possible good entries:
- Pennant breakout
- Pennant support
- Trend support

Target 1 - Red square
Target 2 - 2700 - 2720 range/25.05.2017 ATH reference

Mystery purple line - no idea if it will carry any sort of effect.

References:

babypips.com/learn/forex/wedges
investopedia.com/university/charts/charts7.asp
en.wikipedia.org/wiki/Wedge_pattern

THIS IS NOT A TRADING GUIDE. IF YOU TRADE BASED ON THIS CHART, GOOD LUCK!! I TAKE NO RESPONSIBILITY!!! THE OUTCOME IS ENTIRELY ON YOU!!!

Note

wrote "pennant" instead of "wedge" in description targets....

Trade active

15min Chart

Horizontal resistance here, but the next candle is already forming outside of the wedge, plus MACD crossing up giving a buy signal.

Trade active

15min Chart

Mystery line is resistance. However, I don't think it is/was a sell. 2520-2550 should be support, although 2520 might be tricky due to price bouncing quite a bit there earlier. Buying inside the green rectangle, but not adding to my long.

Note

Also, setting a stop at break even now.

Note

Nevermind. Will wait for higher price before moving stop higher.

Trade active

1hour Chart

1st target reached. Leaving rest of the position open to keep profits coming. Now I'm setting my stop in profit zone. Will close after a convincing top, or if the stop is reached.

Note

1hour Chart

Buying in that green box if we revisit. But who knows, this might break resistance before everyone expects it.

Note

Also note last chart. Adjusted trend resistance so to include every wick from before the drop to the wedge. That would've given me a more accurate timing to sell at TP1.

Note

lol

Note

15min Chart

Bear divergence. But we know divergence can take a while to take effect. Maybe one more top, maybe this was the top. Temporarily speaking. I would be surprised if we don't see a new ATH in the following 1-2 weeks.

Trade closed: target reached

Updating as "Close" because both targets were reached. However in reality I still have some of my position open. Took profit on the first target, but I think there's a high chance of seeing new ATH in August.

Note

August barely starting. New ATH is here.

orangestar4aC

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