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Rising Wedge

price action patterns you need to know ( part 4 ) hi my friends , i'll share with you some patterns which can help you in trading ( part 4 ) Falling Wedge appear in downtrend and it indicates that the sellers are losing momentum in the market, and the buyers are gaining momentum ( long ) you can go long after the break or the retest of the trendline . rising Wedge appear in uptrend and it indicates that the buyers are losing momentum in the market, and the sellers are gaining momentum ( short ) you can go short after the break or the retest of the trendline note : Usually we find there is a divergence in the RSI indicator and this can be used as confirmation . please support me with like and follow me for more ideas .
Education
by Diamond_Chart
2
SPX - October updatePrevious analysis's October 1 - Sept 21 - pre-warning of the rising wedge Hello Traders and Analysts, Breakdown: 1. Note 2. Contents 3. Research breakdown 4. Education recap 5. Information on Lupa. A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged short, due to purchasing further increments upon imbalances. Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities. However, note - the overall trend is bullish. Master Key for zones Red = Three Month Blue = Monthly Purple = weekly Scarlet - Four day Orange = Daily Green = 8 Hour, 16hour Grey = 4hour Pink = 1 hour Bearish Channel upon a diagonal forming? 8Hour time frame. Not looking trade this pattern as yet, due to the fact, the channel upon the higher time frames, looks to create a high probability of rejecting the 4400 mark and creating a further high. However, keep in mind this scenario will form an opportunity for short term traders. See below for the measured update to the 8-hour rising channel. You can look for a test, retest break sell - which is known as a The Daily chart shows us a steep wedge formation - just like the three day chart. Weekly Chart The Fibonacci from the swing low - to the top of the market, which created our new "0" as the new all time high part of the structure. The Continuation of the weekly imbalance had created a new area on the weekly, and bi-monthly timeframe - which offered a 0.236 Fibonacci retracement, indicating that the buying imbalances are still present. . Now the -0.27, -0.618 extension targets are reached. The Wedge channel had begun and created a very strong channel with an effective structure of the sellers attempting to make an imbalance. The channel has now provided areas where price can pivot to. The monthly has a future strong imbalance formed. The three month indicates where price can be used for buying activity* So long as price reacts to the 61.8 & 70.5% levels. See the Pathway where price can take us, using the probability of a bearish imbalance formation. Chinese situation: A quick insight to how the Chinese market works The chinese property is leased for 70 years from the government who will be brought up by Real estate companies who will design and pre-sale units to investors, who will buy off plan using deposits. The cycle of funds will allow the developer to fund the next, complete or buy further leases for the next project, leaving a debt cycle Referring to China A50 USD - the FTSE China 50. Collapse of Evergrande Regulators have warned that its $305 billion of liabilities could spark broader risks to China's financial system if its debts are not stabilised. This will have ripple effects upon the US, Australian market relating to commodity imports from Australia with Copper, Iron has hit these commodities with creating imbalance sells upon the metals. China - will the CCP allow Evergrande to default? "Evergrande's woes also pressured the broader property sector, with Hong Kong-listed shares of small-sized Chinese developer Sinic Holdings (2103.HK) down 87%, wiping $1.5 billion off its market value before trading was suspended" Reuters. Whilst the Chinese real estate market has large multiple ratio where the Chinese seek the real estate to be a wealth inidcator. Despite the prices of price to income ratio as a whole in china the property price is 27.89x the avg income. Expressed as a mortgage % of income is 223% of monthly income. Source: www.numbeo.com What do you think about the current state? Do you enjoy the setups? Professional analyst with 5+ years experience Focus on technical output not fundamentals Position and swing trades Provide updates where necessary - with new updated ideas tracking the progress. If you like the idea, please leave a like or comment. To all the followers, thank you for your continued support. Thanks, LVPA MMXXI
OANDA:SPX500USDShort
by LupaCapital
What are Falling and Rising Wedge Patterns?What Is the Wedge Pattern and Its Common Characteristics? 1. Wedge patterns have converging trend lines that come to an apex with a distinguishable upside or downside slant. a. Wedge with an upside slant is called a rising wedge b. Wedge with downside slant is called falling wedge 2. It has declining volumes as the pattern progresses. 3. It breaks out from one of the trend lines. Why We Should Pay Attention to Wedge Patterns? Some studies suggest that a wedge pattern will breakout towards a reversal rather than a continuation more often than two-thirds of the time. Therefore as the rule of thumb, people generally treat a falling wedge as a bullish pattern and a rising wedge as a bearish pattern, especially a falling wedge would be a more reliable reversal indicator than a rising wedge. Since we know a wedge pattern has a higher probability to reverse and due to the fact that the price of wedge pattern converges to a smaller area, we can trade the reversal set up with a relatively close stop loss to its entry price, which provides us with a good trading opportunity with a decent Risk:Reward ratio. Examples of a Bullish Rising Wedge and Bearish Falling Wedge. Sadly, there is nothing that works 100% in trading. Not every rising or falling wedge will reverse as one might expect. Every trader must properly manage their risk by setting stop losses and not just trading based on price patterns. Below are two examples. Bullish Rising Wedge (ETHUSDT during 15/NOV/20 - 28/DEC/20) In the early stages of the epic 20-21 bull market, if traders blindly treat the rising wedge as a bearish signal and trade accordingly, they would pay a heavy price. Bearish Falling Wedge (LTCUSD during 14/AUG/18 - 14/NOV/18) On the contrary, in the late stage of the 2018 bear market, any trader who blindly trades the falling wedge to bet on a reversal would also learn a hard lesson. Comment down your thoughts on Ascending Triangle Pattern in the comment section. Disclaimer: This is just an educational post. Never trade just any pattern. And please do your research before making any trades. Happy Trading!
Education
by Coinlog
7
AVAXUSDT Rising Wedge shows Chance?/Trading StrategyBYBIT:AVAXUSDT - A rising wedge is building since 9/12 Although lots people told rising wedge is bearish flag, I think we could catch chance if made good use of it. - Apparently, the bottom of this wedge shows strong support before Also, price gained support gradually on Fib(0.382) and Fib(0.5), can note there are two lower shadow on Fib(0.5) Therefore, We could catch its vibration to earn consistently. Based on the downtrend line was broke out and price has stood firm on Fib(0.618)(Orange arrow) Trading Strategy as below. - For Short-term Profit Targets: a) 79.8~83-----Fib(1)~Top of rising wedge Stop losses: a) 65.31-----low from two characteristic lower shadow(Orange horizontal line)
Long
by EthanTW
2
BITCOIN DOMINANCE BREAKOUT???Hello folks, Welcome to this exclusive BTC dominance chart in 8 hours timeframe. First of all, thank you for following and supporting me on the Tradingview platform. It means a lot to me. Through this platform, I am being able to provide quality content and exclusive updates for you all. So keep supporting and show your love for the community. Now, let's get back to the chart. We all know that BTC dominance was under the falling wedge pattern since 31st July 2021. It is exactly 48 days & 8 hours and now finally we can see a breakout above the resistance level. Yes! A breakout of the falling wedge pattern clearly indicating a formation of a new rally, a rising wedge pattern. Wait! But how can you be so sure? it can be a fake-out as well! Yes, I agree with that. I may be wrong and this could be a fake-out or a trap but we can't simply ignore it. We need to pay close attention to the dominance and in this chart, we are going to do that. * The first thing we need to notice is the bouncing level, BTC.D bounced back from 40.43 level close to the same level where the last dominance bounced on 18th May 2021. * The second thing to observe will be the moving averages. In this chart, the blue line indicates the 21 MA and the yellow 50 MA. It is close enough to make a bullish crossover. * The third thing will be the breakout. Like I said this could be a fake-out as well but at least we can wait for the confirmation. If we are really entering the new rally towards the upside then we can expect BTC.D to reclaim the 50% level within no time. But if in any case, this analysis is invalided and the dominance falls then we may see it below the 40% level reaching the 39% or even lower levels. All we need to do is wait for the confirmation. The dominance must hold and close above the resistance level. That's all for the update. If you find this useful then do like and share. What's your thought on the BTC.D? Is it the end of the falling wedge? Is BTC.D going to form a rising wedge pattern? Do comment your ideas in the comment box.
CRYPTOCAP:BTC.DLong
by Dexter_The_Trader
8