SNM - Falling Wedge Reversal Pattern Points To Big Gains Ahead..
On today's BINANCE:SNMBTC chart, I want to show you one of my favorite trade set-ups.
This is called a Falling Wedge Trade.
This trade is very easy because you buy after you break out from the wedge and hold with a wide stop loss to allow for the volatility.
Another entry point is the Upper Resistance Line retest.
Typically when we break out from the wedge, there is usually a retest of the wedge resistance.
On this chart, we may see a retest of the .00000770 level for another possible entry.
The Falling Wedge is typically a bullish pattern that starts wide
at the top and gets thinner as price gets into a consolidated tighter range.
It forms a wedge that slopes down and comes to what is known as
a terminal end point.
Upper Resistance Line:
Connect the reaction highs together with a diagonal trend line.
(You want at least 2-3 highs to make a valid wedge.)
Lower Resistance Line:
Connect the reaction lows in a diagonal trend line.
(You want at least 2-3 lows to touch along the line.)
Confirmation of a bullish move is a break upwards through the Upper Resistance Line
as seen on this chart of BINANCE:SNMBTC.
WHAT ELSE TO LOOK FOR:
To catch this pattern early, look for other indicators like (RSI Divergence,
Swing low failures, Tom Demark Sequential buy set-ups, increased volume, MacD cross overs, Moving Average Cross Overs, etc. to give you an
idea it's going to break out of the wedge.
In this case, we had a historically strong support coinciding with a RSI bullish
divergence and and RSI swing low failure for strong confirmation of a reversal pattern forming.
Also make sure to look at fundamentals:
We have perfect timing with the SONM Minimum Viable Product release coming soon as well, which could be a great catalyst to get us moving higher and bring in more traders.
I'm expecting at least a 60% move out of this trade over the next 7-10 days with a much bigger move over the next couple of months.
Thanks for reading and I hope you learned something.
If this helped you make money or learn something, please click the like button as that encourages me to make more.
Leave a comment below with your thoughts and I'll try and answer them all.
Thanks!
NOTE:
This was a Signal Profits trade given with an entry at 0.00000800 entry and we are already up 10% on this trade, but it has plenty of more room to go.
This is called a Falling Wedge Trade.
This trade is very easy because you buy after you break out from the wedge and hold with a wide stop loss to allow for the volatility.
Another entry point is the Upper Resistance Line retest.
Typically when we break out from the wedge, there is usually a retest of the wedge resistance.
On this chart, we may see a retest of the .00000770 level for another possible entry.
The Falling Wedge is typically a bullish pattern that starts wide
at the top and gets thinner as price gets into a consolidated tighter range.
It forms a wedge that slopes down and comes to what is known as
a terminal end point.
Upper Resistance Line:
Connect the reaction highs together with a diagonal trend line.
(You want at least 2-3 highs to make a valid wedge.)
Lower Resistance Line:
Connect the reaction lows in a diagonal trend line.
(You want at least 2-3 lows to touch along the line.)
Confirmation of a bullish move is a break upwards through the Upper Resistance Line
as seen on this chart of BINANCE:SNMBTC.
WHAT ELSE TO LOOK FOR:
To catch this pattern early, look for other indicators like (RSI Divergence,
Swing low failures, Tom Demark Sequential buy set-ups, increased volume, MacD cross overs, Moving Average Cross Overs, etc. to give you an
idea it's going to break out of the wedge.
In this case, we had a historically strong support coinciding with a RSI bullish
divergence and and RSI swing low failure for strong confirmation of a reversal pattern forming.
Also make sure to look at fundamentals:
We have perfect timing with the SONM Minimum Viable Product release coming soon as well, which could be a great catalyst to get us moving higher and bring in more traders.
I'm expecting at least a 60% move out of this trade over the next 7-10 days with a much bigger move over the next couple of months.
Thanks for reading and I hope you learned something.
If this helped you make money or learn something, please click the like button as that encourages me to make more.
Leave a comment below with your thoughts and I'll try and answer them all.
Thanks!
NOTE:
This was a Signal Profits trade given with an entry at 0.00000800 entry and we are already up 10% on this trade, but it has plenty of more room to go.