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Risingwedgebreakout

📈How to Trade: Rising Wedge Pattern📌 What is the Rising Wedge Pattern? The rising wedge is a bearish chart pattern found at the end of an upward trend in financial markets. It suggests a potential reversal in the trend. It is the opposite of the bullish falling wedge pattern that occurs at the end of a downtrend. Traders recognize the rising wedge as a consolidation phase after a medium to long-term trend, indicating a decrease in momentum. Traders often use this pattern as a signal to take a short-selling position or exit their current position. 📊 How to Identify and Use the Rising Wedge 🔹 Identify an existing trend in a currency pair. 🔹 Draw support and resistance trend lines along with the highs and lows of the trend. 🔹 Wait for price consolidation and the contraction of the support and resistance lines, forming a rising wedge pattern. 🔹 Observe the upper trend line acting as resistance and the lower trend line acting as support, converging towards each other. 🔹 Place a sell order once the price breaks below the support line of the rising wedge pattern. 🔹 Set a stop-loss order at the same level as the support trend line to manage risk in case the price reverses. 🔹 Consider setting a profit target based on the distance between the highest and lowest points of the wedge pattern or by using a technical indicator or a previous support level as a reference. 💥 Key Takeaways: 🔸 The rising wedge is a technical chart pattern used to identify possible trend reversals. 🔸 The pattern appears as an upward-sloping price chart featuring two converging trendlines. 🔸 It is usually accompanied by decreasing trading volume. 🔸 A rising wedge is often considered a bearish chart pattern that indicates a potential breakout to the downside. 🔸 Wedges can either form in the rising or falling direction. 👤 @QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
6
BTC Bearish divergence and VWAP rejectionThis morning I drew this rising wedge and clear and long-lasting bearish divergence on my waves trend oscillator. I used a 30m time frame for better resolution, which also applies to the 4h chart. It was clear we had to break out today or tomorrow, so it happened while I was asleep. I would be so angry because I missed this dip if it wasn't for perfect VWAP rejection on the price bounce back. We can see here that price is struggling to go over bigger history volume action, shown on VRVP. And the hole on VRVP that I explained in my previous idea - remains. Smaller time frames will push the price as much as possible, but I believe we are looking at lower tops and bottoms from now on. 1D was overbought at a 100 level two days ago. 100!!!
Short
by RockinHood
2
DOLLAR INDUSTRIES HIGH MOMENTUM TRADENSE:DOLLAR broke out from a major rising wedge pattern. Price did attempt a breakout prior to this but it could not sustain. Likewise, price gave a fake breakdown before giving a proper breakout and releasing huge momentum (25-30% in 1 week). Strong volumes towards virgin territory is another bullish sign in favor of this trade playing out. One may skip this trade because price has already moved 15% post breakout, But any small consolidation or a considerable retrace in price is a golden chance to enter and ride this momentum. Keep this stock in a watchlist. Don't miss out this beautiful trade. Lookout for any kind of retracement or consolidation and enter blindly. Potential 1:3, 1:4 Risk reward trade. Targets: 600/700/850+ sl: below 465 *as per price action (Opt for a more dynamic sl once price retraces to a lower level near breakout highs) Position size accordingly. WAIT FOR RETRACE. DON'T JUMP IN. LET GO OF THE TRADE IF PRICE CONTINUES TO RALLY IN ONE DIRECTION. HAPPY TRADING!
NSE:DOLLARLong
by PriceActionSpotter
$RELI – SI 76%$RELI entry PTs 5.29-6.30 Targets PT 9-10.50 and higher $RELI – SI 76% Reliance Global Group, Inc. engages in the acquisition and management of wholesale and retail insurance agencies in the United States. It provides healthcare and Medicare, personal and commercial, trucking and transportation, and employee benefits insurance products. The company was formerly known as Ethos Media Network, Inc. and changed its name to Reliance Global Group, Inc. in October 2018. Reliance Global Group, Inc. was incorporated in 2013 and is headquartered in Lakewood, New Jersey.
NASDAQ:RELILong
by BADQOMOCAWGOWLD
1
BTC rising channel on STF - 51.5k or 47.5k next move?BTC showing classic ascending channel on the STF (1h chart) Given the current downtrend, statistically more likely to break to the downside Should it break to the upside, BTC will return to the bull market support band level (51.5k) where it was recently rejected DOWNSIDE TARGET - 47.5k (More Likely) UPSIDE TARGET - 51.5k (Less Likely) In the event of a successful breakout above the bull market support band, with volume, and holding this as support, this would represent a very strong move for BTC. Breakdown to 47.5k would be consistent with the current downtrend which seems likely to lead us to the 42k to 45k again within the next few days....
COINBASE:BTCUSD
by cryptodoc76
USD CHF - Holding shorts - trade updateHello Traders and Analysts, Breakdown: 1. Note 2. Contents 3. Research breakdown 4. Education recap 5. Information on Lupa. A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged Long, due to purchasing further increments upon imbalances. Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities. Master Key for zones Red = Three Month Blue = Monthly Purple = weekly Scarlet - Four day Orange = Daily Green = 8 Hour, 16hour Grey = 4hour Pink = 1 hour Daily Chart The Daily is reacting to a highly pivotal level. Based on probability, the high chance of this rejecting is clear. Daily chart updated Refer to previous idea for more information Refer to the 8-hour chart to the rising wedge pattern formation which is key to understand where price will look to 'tail off' at the imbalance, where a change of hands will occur. The Weekly chart shows us two things to focus on here. Chart 1 - shows the clear lower lows being made since the high - April 2019. Since here, price has shown critical resistance low formations taken on 16th March 2020. Price then travelled and retested the latest imbalance - placed on a deep correctional swing at the 70.5% & 61.8% Fibonacci, but this confirms the imbalance zone. . The Failure to close above this zone - shows the next entry position as the swing high and swing low has completed the imbalance zones. Now using a sell approach risk probable scenario, the defined profit taking points are shown on the chart structure. Chart 2 - The chart here highlights a clear lower low formation where price reacts with a new imbalance - forming lower imbalances, as well as structure Fibonacci reactive zones, providing key probabilities to continue selling. The main draw here for the latest week close here though offers, the imbalance netting. Price here had closed out with buyers reaching the anticipated 'Range' high of the week, but in reality it is a Fibonacci reactive imbalance, emphasizing a further anticipated reactive sell. 4Hour chart provides clear entry positions Based upon the rejection of the daily, the imbalance has been tested, but to confirm a true sell using the rising wedge formation allows entry upon a pull-back to accumulate further orders and a break of structure re-active sell. This is denoted on the chart with the two positions in view. Following the SPX model as a basis for why USD CHF is creating further lows. DXY - Daily chart assists with further selling pressure. Note, this will be tested on a higher timeframe, with bullish structure. - Revert to the SPX analysis for further description. Link to idea: Previous idea SPX VS VIX Refer to the weekly negatively correlated SPX and associated Volatility index. Vix Chart - please keep in mind that the VIX has correlation, causation is caused from the associated short term risk of the sentiment change within profit taking, impending policy changes, health warnings, war and other macro-factors. Refer to the DXY chart to follow the imbalance. Do you enjoy the setups? Professional analyst with 5+ years experience Focus on technical output not fundamentals Position and swing trades Provide updates where necessary - with new updated ideas tracking the progress. If you like the idea, please leave a like or comment. To all the followers, thank you for your continued support. Remember to follow risk management and ensure partials are taken to sustain account compounding Thanks, LVPA MMXXI
Short
by LupaCapital
4
BTCUSD - D1/H4 - WHY I REMAIN BEARISH ?A lot of my followers asked me recently... why I was so bearish ? I will try to "justify" my bearish view in looking today, at the daily and at the 4 hours time frames, which, for me, both of them are quite representative of the recent and current price action which is likely to trigger further downside move towards the 60'000 at least if some important support levels were to be broken on a daily closing basis !!! DAILY Under the pressure of a RSI bearish divergence confirmed a couple days ago which is also showing a double top formation in progress, which is for the time being, of course, still quite far away of its trigger level @ 56'425 ! In addition, the global picture is also showing a rising wedge pattern in progress, with its support line, which also coincides with the important D1 cluster level (currently @ 62'700). Last daily closing level was below TS & conversion line and should be seen as the first warning signal for further downside which would be confirmed by ongoing closing level below TS or better below the pivot support level @ 62'700. Confirmation of the rising wedge downside breakout (@ 62'700) would give a technical target of 52'000 which is also currently the daily clouds bottom support level !!! 4 HOURS The double top target (@ 63'000) has already been filled in this time frame; it has been followed by a pullback attempt which has been, so far, rejected by all three major resistances !!! Currently under pressure, slightly below the H4 clouds support zone. RSI below 50 Failure to quickly recover above MBB (currently @ 64'945) should open the door for former recent bottom @ 62'300 and then 61'700 (very minor uptrend line support level) ahead of the psychological 60'000 level or even potentially lower. CONCLUSION : D1 : Levels to watch, on a daily closing basis, are the following : R1 : 64'550 S1 : 62'700 A daily close either above or below one of the level above mentioned should trigger a roughly 4'500 points. Have a great weekend and may your long goes up and your short goes down Do you like my analysis ? If yes, please do not forget : 1) to like it 2) to add Ironman8848 on your following list that will be great :-) Many thanks in advance. All the best and take care. Ironman8848
BITSTAMP:BTCUSD
by Ironman8848
4
What are Falling and Rising Wedge Patterns?What Is the Wedge Pattern and Its Common Characteristics? 1. Wedge patterns have converging trend lines that come to an apex with a distinguishable upside or downside slant. a. Wedge with an upside slant is called a rising wedge b. Wedge with downside slant is called falling wedge 2. It has declining volumes as the pattern progresses. 3. It breaks out from one of the trend lines. Why We Should Pay Attention to Wedge Patterns? Some studies suggest that a wedge pattern will breakout towards a reversal rather than a continuation more often than two-thirds of the time. Therefore as the rule of thumb, people generally treat a falling wedge as a bullish pattern and a rising wedge as a bearish pattern, especially a falling wedge would be a more reliable reversal indicator than a rising wedge. Since we know a wedge pattern has a higher probability to reverse and due to the fact that the price of wedge pattern converges to a smaller area, we can trade the reversal set up with a relatively close stop loss to its entry price, which provides us with a good trading opportunity with a decent Risk:Reward ratio. Examples of a Bullish Rising Wedge and Bearish Falling Wedge. Sadly, there is nothing that works 100% in trading. Not every rising or falling wedge will reverse as one might expect. Every trader must properly manage their risk by setting stop losses and not just trading based on price patterns. Below are two examples. Bullish Rising Wedge (ETHUSDT during 15/NOV/20 - 28/DEC/20) In the early stages of the epic 20-21 bull market, if traders blindly treat the rising wedge as a bearish signal and trade accordingly, they would pay a heavy price. Bearish Falling Wedge (LTCUSD during 14/AUG/18 - 14/NOV/18) On the contrary, in the late stage of the 2018 bear market, any trader who blindly trades the falling wedge to bet on a reversal would also learn a hard lesson. Comment down your thoughts on Ascending Triangle Pattern in the comment section. Disclaimer: This is just an educational post. Never trade just any pattern. And please do your research before making any trades. Happy Trading!
Education
by Coinlog
7