Reason 1: -Possible descending wedge pattern forming indicating possible bullish reversal? Comments welcome on wether this actually is a descending wedge or not, my pattern trading needs some more work.
Reason 2: -61.8 fib level coincides with bottom of descending wedge pattern, could this be classed as confluence?
Reason 3: -61.8 fib and bottom of ascending wedge pattern is at similar previous level of support seen end of june 2016 and August 2017
FUNDAMENTALS:
-New brexit defeat for the British government, brexit bill sent back to house of commons. Article released 1hr ago from the BBC news website: bbc.co.uk/news/uk-politics-44518702.
PERSONAL THOUGHTS: -May come further down to the 61.8 fib level coinciding with the previous level of support and descending wedge pattern. I beleive it may then break out to the upside as the daily chart is drastically oversold and the looming trade war between US, China and france may start to have a negative effect on the USD soon?
**Appreciate thoughts and comments, constructive criticism only please!
It looks like a really really dangerous prospect to consider that a descending wedge pattern. Not only is the angle of the fall extremely steep, but you don't really seem to have any (...enough of any) clearly defined lower lows or lower highs to successfully plot and label as a descending/falling wedge pattern.
chaosbegone
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@chaosbegone, especially with respect to the bullish reversal scenario you believe might be forming.
FTE1995
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@chaosbegone, thanks for the comment chaos. As i said still fairly new to trading. Does the pattern have to have a certain angle, number of hits within the trendlines when forming then? thought it was making at least one lower low and higher high
chaosbegone
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@JamesEvison, No worries. It's generally a more established pattern if it has at least two of each. Although if you are an Elliotician, for it to be considered a true wedge(actually called diagonals and/or triangles), it would need to have at least 3 on one side (the other side would have 2)...
And no the pattern doesn't need to have a certain angle ... but when a pattern doesn't look right, it's most likely because something else is forming/has formed. You can also search online for descending/falling wedge patterns to hammer home the point.
FTE1995
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@chaosbegone, Really well explained chaos, thanks alot! :) ill make sure to research more into these patterns