Today we will analyze zoom, and we will provide the setup we will be waiting for in case we observe a similar price action.
Important items:
a) The price has been on a Descending Wedge for 170 days (corrective pattern).
b) Currently, the price is supported on an ascending trendline + Lower trendline of the Descending Wedge.
c) If the price breaks the ascending trendline, we can expect more bearish pressure towards the next support zone at 235.00
d) If the price cannot break the ascending trendline, we want to wait for a breakout of the wedge pattern. After that, we will look for a throwback (retest of a broken zone)
e) With all the previous conditions, we will trade above the throwback, and we will set our stop loss below it. The minimum risk-reward ratio we are looking at on this setup is 3.5
Thanks for reading!
Important items:
a) The price has been on a Descending Wedge for 170 days (corrective pattern).
b) Currently, the price is supported on an ascending trendline + Lower trendline of the Descending Wedge.
c) If the price breaks the ascending trendline, we can expect more bearish pressure towards the next support zone at 235.00
d) If the price cannot break the ascending trendline, we want to wait for a breakout of the wedge pattern. After that, we will look for a throwback (retest of a broken zone)
e) With all the previous conditions, we will trade above the throwback, and we will set our stop loss below it. The minimum risk-reward ratio we are looking at on this setup is 3.5
Thanks for reading!