DXC - 4 months RECTANGLE CONTINUATION or CHANNEL ?
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Since 2014, my markets approach is to spot
trading opportunities based solely on the
development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
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Hello Traders ✌
I want to show you this tricky scenario.
As you can see, on the left-hand side weekly chart we are still perfectly inside a multi month Channel with prices that are now testing its upper boundary.
Looking at the Rectangle alone, we could consider it as an upward continuation BUT we cannot ignore the macro situation which tells us that prices could easily fall after touching (or even slightly breaching) the upper boundary of the Channel.
This is why I would initially consider the breakout area to be well above the Rectangle.
If prices took a couple of week or more before breaching the upper boundary of the Rectangle, I would move the breakout area lower since the two upper boundaries (Channel and Rectangle) will get closer to the point of coinciding.
The orange circled area is very uncertain so adjust your tactics accordingly.
Entry Point and Initial Stop Loss depends on your Trading Plan Tactics and Money Management rules.
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
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⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
═════════════════════════════
Since 2014, my markets approach is to spot
trading opportunities based solely on the
development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
══════════════════════════════
Hello Traders ✌
I want to show you this tricky scenario.
As you can see, on the left-hand side weekly chart we are still perfectly inside a multi month Channel with prices that are now testing its upper boundary.
Looking at the Rectangle alone, we could consider it as an upward continuation BUT we cannot ignore the macro situation which tells us that prices could easily fall after touching (or even slightly breaching) the upper boundary of the Channel.
This is why I would initially consider the breakout area to be well above the Rectangle.
If prices took a couple of week or more before breaching the upper boundary of the Rectangle, I would move the breakout area lower since the two upper boundaries (Channel and Rectangle) will get closer to the point of coinciding.
The orange circled area is very uncertain so adjust your tactics accordingly.
- Pattern Class: 🌕🌕🌕🌑🌑
- Target area: see chart
- Breakout area: see chart
Entry Point and Initial Stop Loss depends on your Trading Plan Tactics and Money Management rules.
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
═════════════════════════════
⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
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