1) Price was in a trading range with contracting volatility
2) Range expansion to the upside
3) All wedges are forms of contracting volatility, so while price was moving up, it was also preparing for the next move
4) Price broke the wedge and now we're exploring the downside with increasing volatility
I try to keep my trading simple. While classical TA predicts a drop to the base of the wedge (~$355), I just like to follow the market and see where it takes me. First, let's just see where price goes back into a trading range (crosses the basis) and reevaluate.
2) Range expansion to the upside
3) All wedges are forms of contracting volatility, so while price was moving up, it was also preparing for the next move
4) Price broke the wedge and now we're exploring the downside with increasing volatility
I try to keep my trading simple. While classical TA predicts a drop to the base of the wedge (~$355), I just like to follow the market and see where it takes me. First, let's just see where price goes back into a trading range (crosses the basis) and reevaluate.
Note
The day didn't start very well, but it ended with a solid move down. The trade is slightly underwater but still valid. The strong close down indicates some follow through tomorrow where I'll likely dump it no matter what (profit, breakeven, or loss).
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.
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.