EUR/USD - Risimg Wedge - Perfect Short-Term Trade
The idea is to trade the extreme overbought momentum readings on the higher time frames. A pullback of some kind is inevitable despite the break of the major resistance levels.
The break of the wedge should occur in the next 8 hours, otherwise, the pattern will become irrelevant. SL above the recent established high and TP level based on the MPO from the base of the wedge (NOTE: the levels could be slightly different at the time of the break). Those who want additional confirmation could apply a 1 candle time filter (candle close), before initiating the short trade. A break of the uptrend line on the RSI could be another confirmation.
The break of the wedge should occur in the next 8 hours, otherwise, the pattern will become irrelevant. SL above the recent established high and TP level based on the MPO from the base of the wedge (NOTE: the levels could be slightly different at the time of the break). Those who want additional confirmation could apply a 1 candle time filter (candle close), before initiating the short trade. A break of the uptrend line on the RSI could be another confirmation.
Trade active:
We got a break of the wedge alongside with the 2 confirmations outlined above: 1 hour candle close below it + break of the uptrend on the RSI indicator. Trade opened!
Trade closed: target reached
