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Wedgefalling

XLV is shaping falling wedgeBullish context: weekly uptrend Price position: near last weekly trend low Pattern: four consecutive red days with little upthrust (progression of lows) It looks like previous weekly consolidation area is providing support, and bears are too exhausted to break through it now. This provides an opportunity for a long play. An example of possible trade is shown on the chart. It is important that today closes above 138.6, otherwise, setup is invalidated Disclaimer I don't give trading or investing advice, just sharing my thoughts.
AMEX:XLVLong
by hermes_trisme
WAVESUSDT is testing the supply zone inside a rising wedgeThe price had a nice breakout from the descending channel on the daily timeframe. After the breakout the market had another breakout from the static daily resistance with volume on 1.8$ area. on 4h timeframe the price is testing the supply zone, the 2.5$ area is a key level for WAVES, and now the market is creating a rising wedge. A rising wedge is a bearish chart pattern consisting of two converging trend lines, with the first line connecting the recent lower highs and higher highs, and a second trend line connecting the recent lows. The resulting shape looks like a triangle that is angled upward. The opposite of a rising wedge pattern is a falling wedge. What's next? If the price is going to lose the local support and retest it as new resistance we could see a retracement until the previous daily support on 2$ area
W
by InkyGrip
6
GRTUSDT Ready for the breakout?The price is testing the demand zone on 0.26$ below the monthly support on 0.29$. On the daily timeframe the price is creating a descending channel, and now the price is creating a falling wedge inside it. How to approach it? We need to wait the clear breakout from the supply zone at 0.35, where the market has the dynamic and static resistance. IF the price is going to have a breakout According to Plancton's strategy , we can set a nice order ––––– Keep in mind. 🟣 Purple structure -> Monthly structure. 🔴 Red structure -> Weekly structure. 🔵 Blue structure -> Daily structure. 🟡 Yellow structure -> 4h structure. ––––– Follow the Shrimp 🦐
Long
by InkyGrip
6
Declining Wedge in the S&P 500This is a chart of the S&P Futures (ES!) showing a declining wedge pattern. While technical analysis is admittedly down on the list of my personal trading hierarchy, I think this particular formation is presenting some interesting implications and possible trade ideas. Macro factors not withstanding, I wouldn't be surprised to see either A) more channeling between the 4150 - 4400 range, or B) a relief rally north of 4500 over the next month or two. The Declining Wedge idea supports this thesis... The statistics indicate that Declining Wedges are not a great performer compared to other patterns - and that's ok, because these trade ideas don't need them to be. If we temper expectations and use defined risk, a modest snap to the upside can offer some nice profitable trades. I like to use the "Encyclopedia of Chart Patterns" by Thomas Bulkowski to give my technical analysis some statistical grounding. According to his research, in the context of a bear market (which we seem to be in, at least in the short term), a Declining Wedge has about a 75% probability of making a 5% reversal move, and about a 68% probability of moving 10%. The S&P also currently meets the identification guidelines of a minimum of 5 trend line touches and declining volume (as depicted in the chart). Also note that the Wedge is occurring near the edge of the value area on the Volume Profile. So how to trade it? Since the Declining Wedge isn't a particularly strong pattern, I'd recommend using a defined risk strategy like a vertical spread. Unfortunately due to the current elevated level of implied volatility, vertical CALL spreads aren't pricing particularly well - but here's one: Buy SPY 435 18 APRIL 22 CALL Sell SPY 437 18 APRIL 22 CALL ... this was pricing around a -0.78 Debit... its not a great risk reward, but its viable and fits within the thesis - but what if we dig deeper? Consider for a moment that on a Year To Date basis, the Nasdaq is lagging the S&P. The NQ is rallying considerably this morning, but before the open, it was down by about -14% YTD vs. -11% on the ES. So perhaps if the market bounces over the next month, it will be propelled by mean reversion in the NQ. The NQ is suffering from the same problem as the ES so from a risk reward standpoint, the spread I'd build in the QQQ would follow the same logic as the trade in SPY above - you just might get a little more upside movement in the NQ and thus a little more bang for your buck - maybe... but here's an interesting idea... Can you think of a Nasdaq stock thats been nearly cut in half since the start of the year? Because I can - Facebook. Regardless of the Declining Wedge idea, FB will likely have a vicious relief rally in the coming weeks, if for no other reason than the eventual short covering. I'm very interested in putting on a ratio back spread in FB in anticipation of that move. Something like this: SELL -1 FB 29 APR 22 CALL BUY +2 FB 29 APR 22 CALL ... this was pricing for around a +0.27 credit ... Bear in mind there is a significant amount of risk in this trade with a max loss of about $1,500 per unit. However, the exepected move for FB over the next 45 days is about +/- 30pts, which gives this trade fairly good odds of seeing degrees of profitability over that time - and bear in mind that the profit potential is pretty damn good considering the trade is being done for a credit. Happy trading :)
CME_MINI:ES1!Long
by InnerMotionTrading
OCEANUSDT is creating a falling WedgeThe price got rejections from the descending dynamic resistance on the daily timeframe and bounced on the weekly static and dynamic support on 0.4$ On the daily timeframe the price is creating a falling wedge on the weekly support and now the price is trying to have ha breakout from the upper trendline and static resistance on 0.52$ On the 4h timeframe, the price is creating a rising wedge inside the main structure. The rising wedge is a bearish pattern, but, if the price is going to create a false breakout, we could see a breakout from the daily resistance. The setup is valid only after the daily breakout with retest and according with Plancton's rules –––– Keep in mind. 🟣 Purple structure -> Monthly structure. 🔴 Red structure -> Weekly structure. 🔵 Blue structure -> Daily structure. 🟡 Yellow structure -> 4h structure.
OLong
by InkyGrip
12
VITEUSDT is creating a falling wedge 🦐VITEUSDT is creating a falling wedge on the daily timeframe and now the price is testing the daily resistance. IF the price will have a breakout from the wedge and retest the current resistance as new support, According to Plancton's strategy (check our Academy), we can set a nice order ––––– Follow the Shrimp 🦐 Keep in mind. 🟣 Purple structure -> Monthly structure. 🔴 Red structure -> Weekly structure. 🔵 Blue structure -> Daily structure. 🟡 Yellow structure -> 4h structure. ⚫️ Black structure -> <4h structure. Here is the Plancton0618 technical analysis, please comment below if you have any question. The ENTRY in the market will be taken only if the condition of the Plancton0618 strategy will trigger.
Long
by InkyGrip
14
BTC Douible TopHello Patrons, Right now the price of BTC is 19535 as I am writing this. Dont buy in to the fomo. look at the big picture I posted yesterday. Just to confirm that we are headed down, you can see that within the last few hours we have a double top formation. Just a quick little post about it! if we cant pass this resistance we are headed down to the blue line. Tried to make this post quick today, let me know if you have any suggestions or comments A man will always rise when he falls, but when a leaf falls, it gets stepped on. Peace!
COINBASE:BTCUSD
by Thefallingleaf
1
MATICUSDT is inside a descending channel and falling wedge 🦐MATICUSDT is inside a descending channel and falling wedge. The price is testing again weekly (and very important) structure. IF the price will lose weekly support we can see a new bearish impulse. IF the price will break the falling wedge and turns the daily resistance as support According to Plancton's strategy, we can set a nice order Weekly Monthly ––––– Follow the Shrimp 🦐 Keep in mind. 🟣 Purple structure -> Monthly structure. 🔴 Red structure -> Weekly structure. 🔵 Blue structure -> Daily structure. 🟡 Yellow structure -> 4h structure. ⚫️ Black structure -> >4h structure. Here is the Plancton0618 technical analysis, please comment below if you have any question. The ENTRY in the market will be taken only if the condition of the Plancton0618 strategy will trigger.
M
by InkyGrip
1