Here we can see an ascending wedge and a head and shoulders pattern.
At this moment we can also see that the price action is currently retesting the parallel channel and wedge.
All options in this charts are still valid while it still can go both ways.
If the parallel channel gets broken, close above and an impulsive move up, off course retrace lvls. are invalidated.
If we will see a move down to the retrace lvls, the projection, expansion and extension lvls. for exiting probably will need some slight adjusting.
Either way... no decisive moves as of yet.
A little explanation on the projection lvls. downwards.
A textbook head and shoulders downwards projection would be from head to neckline, now I have seen numerous variations on them, for example the same distance from head to neckline taken from the top right shoulder downwards. In some instances the length would be cut in half due to choppy price action and wicks.
1 to 3 are the more realistic buy-ins and 4 to 7 are the more highly likely lvls.!
However this will pan out, we have several options to tackle this one, so choose one or two and be covered either way ;)
Happy trading.
At this moment we can also see that the price action is currently retesting the parallel channel and wedge.
All options in this charts are still valid while it still can go both ways.
If the parallel channel gets broken, close above and an impulsive move up, off course retrace lvls. are invalidated.
If we will see a move down to the retrace lvls, the projection, expansion and extension lvls. for exiting probably will need some slight adjusting.
Either way... no decisive moves as of yet.
A little explanation on the projection lvls. downwards.
A textbook head and shoulders downwards projection would be from head to neckline, now I have seen numerous variations on them, for example the same distance from head to neckline taken from the top right shoulder downwards. In some instances the length would be cut in half due to choppy price action and wicks.
1 to 3 are the more realistic buy-ins and 4 to 7 are the more highly likely lvls.!
However this will pan out, we have several options to tackle this one, so choose one or two and be covered either way ;)
Happy trading.
Trade active:
I see I made a typo... 4 to 7 lvls are not highly likely, but highly unlikely like mentioned on the chart itself.
Trade active:
If you can remember what was said about the different scenarios that could play out, you should be good either way.
What happened is, the Head and Shoulders pattern its projection to the downside, got chopped up in the price action enclosed in the red box. Tested the parallel trend-line several times and eventually broke it, tested the ascending wedge and is still trending along that line.
What to learn about this...
Always have multiple scenarios covered.
When anticipating downside have a plan B for the upside and vice versa.
What happened is, the Head and Shoulders pattern its projection to the downside, got chopped up in the price action enclosed in the red box. Tested the parallel trend-line several times and eventually broke it, tested the ascending wedge and is still trending along that line.
What to learn about this...
Always have multiple scenarios covered.
When anticipating downside have a plan B for the upside and vice versa.