Initially prevailing uptrend - Yellow line.
1- Uptrend is disrupted.
2- Temporary peak is made (either higher, equal, or lower than prior immediate high).
3- Old previous low is taken out.
If all 3 points are taken out, this is a 1-2-3 trend reversal.
AUDUSD (4hr) 1-2-3 Trend Reversal? Must complete all three steps to be a trend reversal.
Step 1- Check.
Step 2- Check.
Step 3- must break red support line (previous low).
AUD/USD hitting old January highs (yellow horizontal line), with upper bound of Rising Wedge. Plus daily chart RSI at 80!
Very overbought conditions in the short term.
Rising Wedges, especially for downward breakouts, are some of the worst performing chart patterns. Downward breakouts have an unacceptable high failure rate and small post breakout declines. They also have a 72% probability of pullbacks.
Rising Wedges breakout direction: 60% probability downwards.
thepatternsite.com
From Thomas Bulkowski- encyclopaedia of...
Ascending triangle: Despite its reputation as a reliable chart pattern, it is a mediocre performer.
Upward breakout is 63% of the time and 62% of the way into the triangle on average.
From Thomas Bulkowski research. Further details in the link below:
thepatternsite.com
Two red arrows shows two past death crosses (50-day MA moving below 200-day MA). Still in...
