eBay is the paradise of Chart Patterns🟢 eBay is the paradise of Chart Patterns
NASDAQ:EBAY is one of the best stocks if you regularly trade using chart patterns.
In the chart, you can see up to five different market patterns in just one year. This makes trading eBay quite predictable in terms of risk/return.
We are currently seeing the formation of a rising wedge, which can be very profitable for traders.
✅ What pattern is unfolding in eBay?
A rising wedge appeared under the previous high, which is very interesting for two reasons.
If the rising wedge breaks upwards, we could see the breakout of significant highs, giving the market a lot of momentum, similar to the rising wedge in August this year, which yielded up to 20% in profits.
On the other hand, being so close to the highs makes it plausible that the rising wedge could break in its usual direction, downwards, bringing the price near the previous lows and returning about 7% in a few days.
💰 How to trade this chart pattern?
A rising wedge pattern can break in either direction, so it's crucial to wait and see which way the price decides to go.
This type of pattern makes it much easier to follow a market trend.
🛡️ The risk management strategy
As we have done in so many previous ideas, remember you can split the position in 2. Let's explain a Sell if the patterns breaks down:
- 50% of the position in a take profits, at least, as large as your stop loss (adapt SL and this 1st TP to local supports/resistance levels). In this case, a 2% TP for 2% SL (using local supports as 1sst TP)
- 50% of the position to a price as large as the previous pattern, which would mean a profit of 7%.
✴️ ENJOY AND FOLLOW for more 😊
