GOLD Previous Rising Wedge Educational
First if all, why sharing a wedge that happened?
This is purely for educational purposes, I was following this wedge while not trading it.
I don't need the credits for spotting it or something, but I'm sharing this to look back in the future at wedges what worked out well.
About this one:
We see that this wedge was a good textbook wedge.
Why did this wedge workout?
As I'm looking at this wedge I can see that the resistance is tested four times (first of the four it's really testing for a few candles).
The support is holding for a considerable four times also, while the fifth time it broke right through.
The RSI line, which is only there as a validation of our thoughts and not as signal giving factor. Is rising as well what means the buying gets more oversold by the time (logical if you know the exact way a RSI calculation goes).
The last time testing the resistance of the wedge the RSI is at the highest point around 75.
Now we all know that while trading you can't look into the future so the high could not be imaginable.
But the thing that stands out in this case is the second "high" in the RSI that is lower than the first.
The profit you can take?
To be honest, the profit on this trade could only be maximized with a trailing stop.
You could see that this wedge as shown with the arrows (both are exact same size) that the opening of the wedge is the same as the drop after the breakout.
Thanks for reading and I hope you find some of this educational material.
Some feedback is always appreciated!
Wesley
This is purely for educational purposes, I was following this wedge while not trading it.
I don't need the credits for spotting it or something, but I'm sharing this to look back in the future at wedges what worked out well.
About this one:
We see that this wedge was a good textbook wedge.
Why did this wedge workout?
As I'm looking at this wedge I can see that the resistance is tested four times (first of the four it's really testing for a few candles).
The support is holding for a considerable four times also, while the fifth time it broke right through.
The RSI line, which is only there as a validation of our thoughts and not as signal giving factor. Is rising as well what means the buying gets more oversold by the time (logical if you know the exact way a RSI calculation goes).
The last time testing the resistance of the wedge the RSI is at the highest point around 75.
Now we all know that while trading you can't look into the future so the high could not be imaginable.
But the thing that stands out in this case is the second "high" in the RSI that is lower than the first.
The profit you can take?
To be honest, the profit on this trade could only be maximized with a trailing stop.
You could see that this wedge as shown with the arrows (both are exact same size) that the opening of the wedge is the same as the drop after the breakout.
Thanks for reading and I hope you find some of this educational material.
Some feedback is always appreciated!
Wesley
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.