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Chart patterns

Unlocking the Secrets of the Rising Wedge Pattern 📈🔍 Unlocking the Secrets of the Rising Wedge Pattern 📈🔍 ✅The rising wedge pattern is a powerful technical analysis tool that can offer valuable insights into potential future price movements in the financial markets. This pattern is characterized by converging trend lines, with the upper trend line sloping upwards and the lower trend line sloping downwards. Traders and investors often use the rising wedge pattern to anticipate potential reversals or breakouts in the market. Here we can see a rising wedge before the breakout ✅Understanding the Rising Wedge Pattern: The rising wedge pattern typically forms during an uptrend and is considered a bearish reversal pattern. This pattern suggests that the upward momentum is weakening, and a potential trend reversal may be on the horizon. As price continues to oscillate between the converging trend lines, it creates a narrowing price range, indicating increasing indecision and potential impending volatility. ✅Key Characteristics: - Converging trend lines - Upward sloping upper trend line - Downward sloping lower trend line - Decreasing trading range - Bearish reversal potential Here we can see a rising wedge pattern after the breakout. The pattern evidently played out well. ✅Examples: 1. Stock Market Example: In the stock market, a rising wedge pattern may develop on the price chart of a company's stock during a prolonged uptrend. As the pattern unfolds, traders and investors monitor the potential breakout or breakdown of the pattern to make informed trading decisions. 2. Forex Market Example: In the forex market, the rising wedge pattern can be observed on the price chart of a currency pair. Traders analyze this pattern to anticipate potential trend reversals and plan their entry and exit points accordingly. Here is one more rising wedge breakout example ✅Conclusion: The rising wedge pattern is a valuable tool for technical analysts and traders seeking to gain an edge in the financial markets. By identifying and understanding the characteristics of this pattern, market participants can better anticipate potential trend reversals and capitalize on emerging opportunities. By incorporating the rising wedge pattern into their analysis, traders can enhance their ability to make informed decisions and navigate the dynamic landscape of the financial markets. 📊💡
OANDA:XAUUSDEducation
by TopTradingSignals
1
Nifty50 Analysis and Trade Plan for August 09Supply and demand zones marked on yesterday's chart hold good for tomorrow as well. Black Line zones - Resistances R1 - 19617-19639 R2 - 19723-19795 R3 - 19805-19822 R4 - 19842-19876 Green line zones - Demand S1 - 19593-19574 S2 - 19555-19510 S3 - 19595-19462 S4 - 19350-19295 Analysis:- Same as yesterday, Nifty has not moved majorly from yesterday’s OHLC. Hence Requoting “Nifty is in the process of forming a retracement, Lower High for the Downtrend formed. But if it moves strongly above 19684-19733 which is the 78.6% to 88.6% retracement levels of the previous major swing, which also coincides with the Gap supply zone and out of the falling channel that has formed, then there are high probabilities that the market trend would change to an uptrend.” 19530 will act as an important support level, for 2 days, the market has been taking support at 19530. Trade Plan:- If the Market opens a gap up – 1) Will look to short the market based on setup confirmation till the Gap filling / Trendline support/R1 or till 19530 based on price action and run further as needed. 2) Can go long only after consolidation breakout , but too many sell zones above, so may not be keen on this trade unless Nifty crosses and sustains above 19876 zone. Will watch for major resistance zones marked above – R2,R3,R4. If the Market opens flat - Will wait for Price action, may be a rejection at R1/TL Resistance again till 19530 or below or could be a consolidation again till 19530 and then move up. 1) Possible short scalp from TL rejection till 19530 based on setup confirmation or could wait till 19530 breaks and then ride till next support level of 19460. 2) Will go long only post consolidation breakout of the smaller TL that has formed today but would be cautious at the major Trendline above and also the gap supply above it, will be keen on price sustainability above the major Trendline till the gap zone of 19738. If the Market opens a gap down - 1) Will look to short the market if any setup confirmation signal is obtained till the demand levels as marked based on where it opens either at S2/S3/S4 levels. Will be keen to short if there is a huge gap down at 19400 based on setup confirmation. If the price takes support, one may wait for consolidation up moves. 2) Will look to go long only if any setup exists post 75 minutes of consolidation/price sustainability at the higher levels from the Possible demand levels. Please check for Demand zones below 19200
NSE:NIFTY
by Rugminik
1
Baja Finance Intraday Trade Levels and AnalysisThe stock is reversing from demand zone after 4 days of consolidation in the same zone, also there is a double top breakdown in Daily time frame, and the stock is poised for a retest of the Double Top neckline area. 75 minutes shows Double bottom very evident with RSI divergence and RSI moving into 70+ strength zone, an up move of odd 7200-7400 levels is possible. Hence with the above levels, one can consider a long Intraday trade with an RR of min 1:1 or max even 1:2.
NSE:BAJFINANCELong
by Rugminik
3
GBP/USD on watch for me today.GBP/USD: • If price pushes up to and ideally just above our upper trend line and the last part of the move is corrective, then I'll be looking for a risk entry after a phase line break on either the one hour or the fifteen minute chart because we will have had a completed three touch structure. • If price pushes up impulsively to and ideally just above either our upper trend line, our upper rayline or our lower rayline, then I'll be waiting for a convincing push back down followed by a tight flag where I'll be looking for a reduced risk entry on the break of the flag and if the flag forms just below our lower rayline as illustrated I'll be hiding my stop loss above it for extra protection as illustrated. • If price pushes up to and ideally just above our lower rayline, then regardless of how price does so I'll be waiting for a convincing push back down followed by a tight flag where I'll be looking for a reduced risk entry on the break of the flag. • If none of these setups present themselves then I will simply wait until another setup which meets my plan materialises. • If there's any ambiguity then I will not place any of these trades.
Editors' picks
Short
by StewySongs
44
How To Trade Like Banks Using Accumulation & Distribution: FOREXIn this video, I will be sharing How To Trade Like Banks Using Accumulation & Distribution and give my forex tutorial so you can watch it to possibly improve your forex trading skillset. The concept of accumulation & distribution in forex trading is very important to understand the cycles that the market goes through and not remain trapped in sideways moving markets with tons of manipulations.
Education
by Transparent_Fx_Analysis
11
General Pattern Failure Explained on BitcoinWhat is General Pattern Failure? General Pattern Failure occurs when a chart pattern breaks out, fails to hit target, quickly reverses then rejects off that same breakout level back inside the pattern continuing in the opposite direction of the breakout. Pictured above in the original chart is a normal breakout on a Inverse Head And Shoulders Pattern while the lower very right examples show General Pattern Failure on the same pattern. Note how the first example has a Bullish Retest (A) where price actually increases at the breakout while the second example is coming back inside that area and finding resistance back inside of the pattern, (Bearish Retest, (B) this then leads to price falling back inside with strong volume/momentum. General pattern failure can also be considered a Liquidity Grab or can be referred to as a “Fake Out”. ----------------------------------------------------------------------------------------- Other Examples: The below image shows General Pattern Failure occuring in the opposite direction on #Bitcoin at $11000 on a Head & Shoulders Pattern. The below image shows General Pattern Failure occuring on BNB Binance Coin (Great Example, Click the image to see the trade play out) ----------------------------------------------------------------------------------------- Final Thoughts: So by using the above methodology we have a potential clue here for Bitcoins next movement, I am watching the 49-50k area to see if we continue to fall or see a short term push (if we get back above the Inverse Head & Shoulders Pattern, $53000 is the next area of interest). Learning to trade patterns such as these can provide great opportunities if you understand price action and how to identify the key areas of the pattern that other traders and investors may be focusing on too, these areas become important psychological levels on the chart that allow us to map out potential trades.
COINBASE:BTCUSDEducation
by Worth_The_Ri5k
$AUDUSD - Inverted head and shouldersHi guys! 👋🏻 🔔 I believe the impulse is very high and the Australian Dollar will continue upwards. The track for the #DXY will be set by important economic data today and tomorrow, especially the #NFP - non-farm payrolls. 🔔 Russian Ministry of Finance this week declared the start of Gold purchases starting February 7, might effect the Gold price. The current economic and political sitiation is very tense, so Gold could hike this year, dragging AUD upwards with it. 🔔 Wedge pattern is about to complete and I am waiting for a breakout here, though the best would be a retest of 0.71, though might not happen. ✊🏻 Good luck with your trades! ✊🏻 If you like the idea hit the 👍🏻 button, follow me for more ideas.
Long
by azizelliott
2
HEROMOTOCO Haven't seen a cleaner Diamond breakout in quite some time. Although diamond top upward breakouts have poor performance statistics, the Cleanness of this pattern + Above average Volumes on breakout + MACD bullish crossover is persuading me to take action. Target 3130 Keep SL according to your risk appetite. ********************************************************************************************* DISCLAIMER: I am not a SEBI registered investment advisor. This content is for educational purposes only. Invest capital at your own risk only after doing your own due diligence *********************************************************************************************
NSE:HEROMOTOCOLong
by Samyak_Shah
GUFIC BIOSCIENCES 1:3 🎯50% trade.NSE:GUFICBIO Broke out of rectangle consolidation pattern and now price gave retest + confirmation. Bullish signs- Big volumes on breakout and on the buy side. Price entered virgin territory with this consolidation and breakout. Recent support from 30 week MA. Low volume red candles. Pattern is of a bullish flag type. Stock has already delivered multibagger returns of 2000%. One can enter entre position at C.M.P with a big sl in view of a taking a positional bet for next 1-6 months. Targets: 275/320/375/400+ Place wide sl below 200 Trail sl if trade goes our way. Position size accordingly. HAPPY TRADING!
NSE:GUFICBIOLong
by PriceActionSpotter
Why I have not yet recommended short trades.Traders, As you know, when you are bullish, you go long. And when you’re bearish, you short. Many of you have noticed that my bullish sentiment has quieted down a bit. It may even appear that I have become bearish in the crypto space. Short-term, maybe a bit bearish. Longer-term? Not yet. So, why have I not taken any short trades during this drawback? Well, the answer is actually threefold: 1) I don’t actually know how long this drawback will last. I have an idea. Yes. But, as with any analysis, these are just best guesses at this point. 2) You all know that for whatever reason, Coinbase has locked down my trading account. They won’t tell me why but I think I may have an idea - more on that another time. This means that I cannot transfer crypto out to an exchange that offers shorting opportunities even if I wanted to. But do I really want to? Not really. And this brings me to my last reason. 3) I just don’t have enough bearish conviction at this point to short the market. To go long, you must have conviction that your investment will pay dividends. To go short, you must have conviction that the bears are in complete control and you will be able to complete your trade at a lower price. I just don’t have that kind of conviction. …Yet (this could change). At this point, I am simply undecided with a slight bearish sentiment. This is not enough for me to short this market. Again, my sentiment would become more bearish especially if we drop below that black ascending trendline I continue to reference in my video updates. But even then, my current trading portfolio is restricted. Therefore, under my circumstances and with my lackluster bearish conviction, it does not make sense to short. At this point, I would rather simply offload into stable coins if I become more bearish and then look to re-enter at the lowest price possible. These are mainly the reasons my paid subs have not seen any short trading from me. Hope this helps you to understand my current perspective a bit. Take care traders, - Stew
INDEX:BTCUSD
by stewdamus
AFFLE INDIA CUP AND HANDLE TRADE 🎯40% NSE:AFFLE broke out of a cup and handle pattern and gave a retest. Price made a green candle and is back to breakout levels. Bullish signs: Strong uptrend before this consolidation. Recent support from 30 week EMA Heavy volumes on buy side. Red candles are of low volumes. Hit all time high on breakout. One can enter entire position at break of yesterday's high. Targets: 1500/1600/1900 Place sl below 1120 1:3 HRHRHP trade Position size accordingly. HAPPY TRADING!
NSE:AFFLELong
by PriceActionSpotter