GenesisCTY
Short

GBPUSD: Rising Wedge Setup! Good short!

FX:GBPUSD   British Pound / U.S. Dollar
Hey guys! Found a Rising Wedge Pattern right here on the GBPUSD             Daily chart! Soon to be completed! Watch for the breakout!

What influenced my decision:

-Falling volume
A rising wedge should always have falling volume , this shows that there are a decreasing number of buyers, which gives conviction that the pattern will fall.

-Really Strong Downtrend (both of Daily and Weekly timeframes)
This implies that the pattern would be more reliable because of the strong downtrend.

-Less than 50% Fib Level
Most times, the rising wedge is kind of a retracement on the higher timeframe, so if the rising wedge is lesser than the 50% Fib Level, this gives a stronger signal that the wedge/retracement is likely to fall!

- Narrow trend lines
In Thomas Bulkowski's Getting Started to Chart Patterns, it was discovered that narrow trend lines performed better than steeper trendlines . Basically this means that trend lines with 30 - 45 degrees will perform better than those above 60 degrees.

-Good Amount of Trend line Touches
Again, Thomas Bulkowski (this guy is a genius, read his books guys!) found out that the more times that price touches the trend lines (at least 3 touches), the breakout will perform better as it means that the breakout is more SIGNIFICANT.

Confluence Score: 5 points

Good luck guys! May the pips be with you!

Do note that not ALL of my trades will be correct 100% of the time! I only provide what I see and what I feel as a trader! Trade my views at your own risk! :)
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