Rising and falling wedges are normally very reliable patterns.
They normally have 3 touches then break. Looking at your chart we had the fake upside #3 break. The warning was that it came back inside the wedge as your chart shows followed by the break.
I am a pattern trader and this is one of my favourites. Working off Daily there was an Evening Star formed on 09/11. That was my signal and I entered short on 09/12.
There is a pull back underway with spot now at 1336+
You had a support break at 34 and I am wonder whether you should now add a resistance TL at 39/40
I am thinking to exit my short on this break cos I feel it could attempt to fill the gap before moving down. But I am interested in your thoughts.
Regards
Murray
Looks like current structure shows the potential of reversal and we have a high probability that full target will not be reached.
I have just moved SL to break even now and will watch.
Oh_If_Only
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Hi @pablo82,
Can you update your main chart. This pattern may still support a short ... NOKO has moved it long, although Aussie stocks & S&P Futures were down most of my day, but have since moved back towards parity. Also I would like to see where your MACD Histogram is.
I use a variant of +DI/-DI with some success. Currently building an excel trading model to auto signal and position size. It can only forecast off a system composed cheat sheet - user specifies their suggested future targets (Fib, Swing price (D,W,240 etc), Indicator levels (STO > 85 MAD Histo turns south etc) basis a price ie estimated close in 3 days or mid price in 5 days etc then system works out R/R and says Yes or No basis your rules ie min profit (%//Days) max loss.
Removes emotion to a degree, but sometimes you can not beat gut
Good trading; talk soon
.... just my 2c worth