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Descending Broadening Wedge

XAUUSD - Descending broadening wedge bullish breakoutA few days back I posted analysis on a bullish reversal flag pattern that had formed in gold. At the time I said to be watching to see if price would stay broken out or if bears while push is back down inside the pattern. Price did fall back inside the pattern, fall down to make new lower lows and then staged a very impressive V shaped price reversal. This recent price action caused a descending broadening triangle to form, which is a bullish pattern. Price has already broken out of this pattern so just as before will be watching if this hold and price moves higher in the coming days. While recent price action has been bearish also keep in mind that gold is sitting on top of some major support levels which means we could see gold pop back up higher yet again. The goal will be to see if this is simply a retracement before the next leg lower or if there will be a more significant price reversal. I have got neutral/long on goal through short puts on SPY. This type of strategy is profitable if price moves higher, side-ways or even slightly lower. This type of trade would only be a losing trade if price moved lower in a major way which I see as the least likely scenario right now.
OANDA:XAUUSDLong
by krugman87
Bitcoin at 12K by JuneHey Friends, This is an update analysis on Bitcoin. I want to preface that this is a mid ranged idea just to give you some perspective, I'm thinking this idea should take about a month and a half. I'm sorry the chart is a little messy, there's a lot going on, but I want to point out these various significant levels. I'm seeing a cup and handle on Bitcoin's 4h chart. Looking back at the history I've hilighted a couple areas of support/resistance in yellow. You can see how many times those zones were tested, which makes them more significant. You can also see the EMA's have flipped from bearish to bullish and are now providing support. Looking at the Fibinacci's I'm expecting a nice stairstep climb higher. I think it's too early for too much FOMO but then again I could be wrong and we could skip the retest of the .618 and head straight up to the 1, but I'm hoping for the stair step climb so that we continue to record higher highs and lower lows and build investor and market confidence. I've still have the Decending wedge pattern in my scope I think that level becomes more significant as we move forward. Like it if you like it, and comment if you have questions, I'm happy to answer. **This is educational information only, please do your own research before trading**
COINBASE:BTCUSDLong
by DHuts
7
Two potential inverse head and shoulders scenariosThere are two potential inverse H&S scenarios playing out for ethereum. I have overlaid both on the chart, one in blue and the other in green. We are currently in a potential bearish flag (purple parallel line) and it all depends on how this breaks. Scenario #1 (green): the flag is currently forming at the 0.786 fib retracement since last bottom and top and may be a short term reversal, however this is not supported by the volume (trending down and full of bear activity). If this somehow breaks up then we could be forming a IHS that will probably be rejected at the neckline at first but then may cross on a second attempt. I recommend a buy at this break (on the pullback to retest the neckline) with a reasonable stop below the neckline. This might leave us in the area of $450-470 where I recommend a heard sell and then wait to see what happens. If we break that major outermost trendline then we might be headed to even higher highs but from my previous analysis I still see a leg further down so don't count on it. I'll have more analysis before then. Scenario #2 (blue): the flag breaks downwards and touched the bottom trendline. Support here will confirm a typically bullish descending right angle broadening wedge where Bulkowski recommends a buy at this third touch with a pretty tight stop below the trendline. We would then likely work our way up to test the neckline, fighting through some resistances along the way, and eventually be rejected at first, drop down, create a right shoulder, retest the neckline, maybe get rejected slightly but then break and head towards the major resistance trendline where once again recommend a hard sell between $440-460. Don't follow the timeline of the drawings exactly, there should be a lot of up and down before the neckline is reached. We had a very similar set up following the March $7200 bottom for bitcoin where the first push (similar to the last few days) came short of the trendline, consolidated, and the second push touched but then got rejected bringing us to new lows. I expect something similar. This is up to 5 days out and a lot can happen between now and then and ultimately it relies on bitcoin and what its price action is doing. Both bitcoin and ethereum have room down and we should not yet be at our true bottom. If we break this bottom trendline somewhere near the stop then don't bother jumping in until we see something more concrete. The market is still bearish so these are short term swing plays. Peace and love, crypt0guy
BITFINEX:ETHUSDLong
by crypt0guy
Inverse H&S scenario or wedge bottom or pits of hellBitcoin is currently consolidating in a bearish flag (purple lines). This often marks the halfway point of a move. We are also currently in a descending right angled broadening wedge (dashed lines) which is typically bullish according to Thomas Bulkowski. I don't anticipate a break upwards on this, however if we do then consider taking a position above the top trendline on the pullback with a stop right under that line. My two more likely scenarios are forming an inverse head and shoulders or a further decline to new lows. The most likely trajectory is the bold red line. Scenario #1: this flag breaks bearish and lands us right near the February bottom of ~$5800. This would also be the bottom trendline of the megaphone shaped descending right angled broadening wedge. It is typically recommended to play these patterns at the third bottom touch and seeing that it is also the $5800 area bottom, we might see a lot of activity in this area and is a strong buy recommendation with a stop just below the bottom trendline of the megaphone. If it bounces up here, then move your stop loss up below every MAJOR consolidation on the way up. I cannot definitively say anything about where a sell target is on this move so my best recommendation is to follow it because this might in fact be the bottom we are looking for. The IHS should terminate near the major bearish trendline that has contained the market since the all time high. We will likely be rejected at first and if you want to protect profits then take them at this trendline and re-enter if we break through. Scenario #2: flag breaks bearish but IHS fails to form in which case, wherever we get rejected we would be headed to new lows where the next good buying opportunity would be near the support trendline since February 24th. This would also complete the descending wedge pattern forming since then and is also a strong buy opportunity with a stop not to far below that trendline support because if we fail there then who know where we are headed. However, if we break back into the wedge, then consider re-entering. I play conservatively and have no problem losing some potential profits on that. Peace & Love, crypt0guy
BITFINEX:BTCUSDLong
by crypt0guy
Every major chart pattern between 3/18 and 3/28!Chart patterns are great ways to anticipate reversals of trends. Other indicators like MACD and RSI can help you figure out more exactly when but identifying chart patterns are a great way to see a reversal coming. The first step is knowing how to draw trend lines. With these you can more easily see how the range of a certain move is changing. If the range is either tightening or widening, the likelihood is that a reversal is coming. Typically, volume will also steadily decrease throughout the pattern, ending in a climax in which the trend reverses. On the chart you can see several types of common chart patterns labeled, bearish in red and bullish in purple. I always consult Thomas Bulkowski's guide on chart patterns if I am ever in doubt. His observations were for stocks but work really well for cyrptocurrency trading as well. Especially because patterns tend to form a lot more quickly than traditional securities. Resources: (1) Rising (ascending) wedge (2) Bullish pennant (3) Falling (descending) wedge (4) Descending broadening wedge Peace and love, crypt0guy
BITFINEX:BTCUSDEducation
by crypt0guy
Ethereum is one sad pandaEthereum is still coupled with bitcoin so if the latter takes off then expect Ethereum to try its best to tag along. However, ETH is far more oversold than BTC which is why we should all be concerned that its bounce today was so weak compared to Bitcoin when in the past it was the reliable option to trade for large moves while using BTC price trends and indicators for trade setups. Something seems different now, even though ETH is far more oversold. Nonetheless, ETH formed a lower high while BTC formed a higher high tonight and BTC is due for a correction which ETH will have no problem following. ETH seems caught in a slightly downward trending channel (possible weak descending wedge pattern) while consolidating, volume has been decreasing as well indicative of us still consolidating. ETH also has yet to form a higher low, an important signal preceding a reversal. One our way down, we may find support around the recent bottoms around $375, $364, and $358. If this is a five move consolidation, then expect us to extend to at most $395 at the top of the channel before retracing, or being rejected from this blue dotted trendline very soon and continuing down to one of the mentioned supports.The first upward move in this consolidation formed an ascending wedge that broke bearish. Expect this current leg up to end the same way. I would not touch ETH until it breaks clear of the channel or bottoms below $360 for an aggressive move with a tight stop loss. No rush to get in here seeing as how it performed next to BTC, a surprising twist. BTC will have a leg down sooner soon too and will drag ETH with it. See my most recent post on bitcoin for more. Peace and love, crypt0guy
BITFINEX:ETHUSDShort
by crypt0guy
"This is not the bottom you're looking for"Who really knows with Bitcoin? Even the top trending charters are wrong most of the time if we're being honest. This might be the bottom (or at least a temporary one), but really expect the true bottom to be preceded by a capitulation event and be more explosive. Here's where we stand from a trading perspective. If you missed this bounce, the risk-reward ratio is not super. We are currently nearing the end of our double combo correction.. now officially in wave 4 of the second 5-wave of the 5-3-5 five combo. This wave 4 segment will likely terminate near the trendline connecting the peaks at the end of the 3 wave correction at C, or, at the trendline that has contained the market since the ATH but this is less likely. We will probably keep squeezing into this wedge until we get to around $6k. The wedge trendline convergence and end of the double combo correction should leave us almost perfectly at a double bottom where you should see quite the fireworks, if we ever do get to that point. Peace and love, Crypt0guy
COINBASE:BTCUSDShort
by crypt0guy
NZDJPY descending wedge formationA descending wedge formation, have formed. The price have been in a down trend, since end of January. The price have hit a support level from december 2017. and can be signalling a short term revers in the trend. If the price breaks the wedge. Point ((c)) will be the reversal level, where The resistance line in the wedge will be the TP For now its a long setup, with entry at this level and SL at 74.961. _____ 1. descending wedge formation, with correlated Wave´s 2. Bullish divergence. ( the the green line in the RSI and Chart) 3. Supportlevel have been hit. 4. Bullish morning star formation.
Long
by Fx-AlphaStrats
Post MortemThe cause of downfall appears to be double tops as identified in The Reprieve There was later a pullback attempt from arrow marked support Pullback resulted in double bottoms as well as breakout of blue descending broadening wedge (Triple Treat) Double bottoms got busted, resulting in the continuation of the downward march, originally triggered by double tops, creating yet another lower ceiling descending broadening wedge prison cell and new double bottoms' pullback adjusted target for double tops which is in line with the bears' flag's second!
COINBASE:BTCUSD
by casim
The BIG FAT DBW - BTC to $4K then to $20K+Not sure how many people have noticed this, but there is a massive descending broadening wedge quite evidently formed on the daily and it is validated. The upper resistance has been hit twice, along with the support line being hit twice, all of which is showing exactly what's needed to confirm a broadening wedge, lower highs and lower lows. Hitting the support line one more time, is the moment I would go long, whether it is at the $4K region or not, one more hit to the support line, is my signal to GO LONG! The $4K region is a previous heavy support and resistance. Hitting the $4K range, should also help reset the monthly RSI and I would like to think it would be a very healthy correction for BTC. Or it might actually just scare the hell outta all of us and it will take many years for BTC to recover, but recover it will :) Just my noob opinion, take it with a pinch of salt!
BITFINEX:BTCUSD
by byi_786
1
BTC Descending Wedge, more downside with potentially huge upsideWe saw a falling wedge in btc last month and another one that is larger now. The previous one played out perfect and we tested for a higher high but failed. We are now intersecting two supports that are diagonal lines which is the support within the middle of the big diagonal channel and the bottom support line we bounced off of in February. We will also bounce off a major fib level. Target after 7,1 is 8,971, if we break bear trend then the new target is moon.
by intial0