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Understanding how the markets work. not just drawing magical lines on the chart.
No need to complicate things. Since we all know a falling wedge is a bullish pattern, what we are looking for here is a good entry which is what the bullish divergence just gave us. Idea gets invalidated at that stoploss price.
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Using basic Support and Resistance, i am expecting price to get to the take profit level marked out on the chart and if we go lower to the point of our invalidation level then the trade idea is no longer valid.
We have a falling wedge pattern here on the ATOM 1HR chart which is a bullish pattern by default so i'll be taking a long from here up to the take profit level while my stoploss will be at the invalidation level as it proves the trade idea wrong at that point.
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