The target I posted initially is not correct. Completion of the pattern with an upside breakout should land the price at 2650.
Thanks to @sifeij for pointing out my error.
Happy trading!
Trade closed: target reached
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Target reached.
Lots of momentum now and starting to form a trade-able trend. May publish another idea on this as things develop.
Comments
CovidScamIsAnIQTest
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What is the reason for 2800?
Shankt
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@sifeij, Topside breakout target is 79% of the difference between highest peak and lowest valley for this pattern as detailed here: thepatternsite.com/dbw.html
CovidScamIsAnIQTest
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@Shankt, Interesting. Thank you for the information.
CovidScamIsAnIQTest
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@Shankt, It actually says: "Breakout - The breakout direction is upward 79% of the time."
This does not mean what you meant though.
Shankt
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@sifeij, Actually, find the following statement in a table under the section "Descending Broadening Wedge Trading Tips":
Measure rule:
For upward breakouts, use the highest peak (A) in the chart pattern as the target. For downward breakouts, compute the difference between the highest peak (A) and the lowest valley B in the chart pattern to get the height. Multiply the height by the above "percentage meeting price target" and then subtract it from the lowest valley (B) to get a price target.
From this is drawn the price target.
Shankt
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@sifeij, as I re-read this, I realize my target is wrong-- it should be the level of the highest peak in the pattern.
CovidScamIsAnIQTest
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:thumb:
Thank you.
No matter what, that is a nice discovery of chart pattern. I have not heard of it before. Thank you.
CovidScamIsAnIQTest
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@Shankt, You know ETHUSD might also qualify for descending wedge as you described :) Wait for you to do another chart!
Shankt
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@sifeij, I can't argue your point. Maybe you could draw it up and publish your first!