Updated

Rising wedge pattern

The rising wedge pattern typically represent a reversal, however in market conditions lately we've learned to stay open minded and that anything is possible. We will focus on the candlestick story teller within the patter. Is it the bulls or the bears who dominate this pattern?. A trick we use is to fade the candles, at this point in time it seems like the bulls are dominating this pattern and we do expect a break to the upside. We will however not be blinded for downside opportunities. Stay focused and keep your head in the game.

Information, charts or examples contained in this analysis are for illustration and educational purposes only. It should not be considered as advice or a recommendation to buy or sell any security or financial instrument. We do not and cannot offer investment advice.

Note

We've used an estimate of pattern height as both target projections up and down. The down TP coincide with a support level and this might give us some indication where the price can stop when it starts falling.

Note

Lets take it one step further, expect the break to happen before 21 Feb 21

Note

Break of wedge, halfway to our target. Can we possibly see a correction to test the resistance of the wedge as support (change in polarity principle) before moving higher?
Change in polarity is a powerful trading concept and we will look at it in detail with and educational post.

Note

First target in reach, trades managed.

Note

Did this rising wedge gave us a hint that the trend and a final push higher was just a confirmation of bulls running out of steam.

ForexCollege

Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

ForexCollege

Also on: