Firstly I would like to say that currently we are in Ranging Market and In this this type of Market it's becoming dangerous to trust indicators and oscillators (when there is no volatility) I mentioned about this in my previous article.
Despite of what I have said above I used three indicators on my Chart (they are 10 EMA, 50 EMA and ADX) Let me explain why.
Start with ADX which is a "non-directional indicator". This indicator is used to define the strenght of the current trend and now ADX line is under 20 which means this trend is very weak + the fact that Descending triangle is completing its formation and reduced volatility tell us the big impulse is going to occur soon.
In my case EMA lines (and it is important for them to be "EMA" and not "SMA" because they are smoother and less sensetive to spikes) are waiting to react to the next move and combined with ADX they will show how strong and impulsive this movement will be.
The Descending Triangle itself considered as a bearish pattern in most, is not giving us some clue to the next direction where Price will go. Because there were cases when price just broke up resistance line and cases when support line was broken as well and even the preceding to this formation trend can't help us to calculate next possible direction. This formation can be eather a continuation or a reversal pattern dependent on situation. And that's why we can't make any judgements
So my key point is still wait for the Breakout as I said about this in my previos article. The only difference now that I have great tools to react on this in time!
Please write in the comments your opinion about the situation and share your charts!
Also hit the like button, in case you like this idea and subscribe to the Channel in order not to miss new ideas!
Remember this analysis is not 100% accurate. No single analysis is. To make a decision follow your own thoughts.
The information given is not a Financial Advise.
Despite of what I have said above I used three indicators on my Chart (they are 10 EMA, 50 EMA and ADX) Let me explain why.
Start with ADX which is a "non-directional indicator". This indicator is used to define the strenght of the current trend and now ADX line is under 20 which means this trend is very weak + the fact that Descending triangle is completing its formation and reduced volatility tell us the big impulse is going to occur soon.
In my case EMA lines (and it is important for them to be "EMA" and not "SMA" because they are smoother and less sensetive to spikes) are waiting to react to the next move and combined with ADX they will show how strong and impulsive this movement will be.
The Descending Triangle itself considered as a bearish pattern in most, is not giving us some clue to the next direction where Price will go. Because there were cases when price just broke up resistance line and cases when support line was broken as well and even the preceding to this formation trend can't help us to calculate next possible direction. This formation can be eather a continuation or a reversal pattern dependent on situation. And that's why we can't make any judgements
So my key point is still wait for the Breakout as I said about this in my previos article. The only difference now that I have great tools to react on this in time!
Please write in the comments your opinion about the situation and share your charts!
Also hit the like button, in case you like this idea and subscribe to the Channel in order not to miss new ideas!
Remember this analysis is not 100% accurate. No single analysis is. To make a decision follow your own thoughts.
The information given is not a Financial Advise.
