The wedge formation shown is not pure. It is complex. The tighter sharper wedge could see price falling out and to the south. The other enclosing wedge could see price rising north. In situations like these one has to decide: 1. Long with an ATR appropriate stoploss. 2. Short with an ATR appropriate stoploss. 3. Stay out completely. In addition to the wedge...
Buy: $84 Put 02/08 Sell: $79 Put 02/08 Buy: $74 Put 02/08 Cost: $250 Breakeven: $76.50/$81.50 Max Profit: $750 Volatility contraction trade, TP around 10-20% of max profit. Somewhat risky but with a nice 3:1 Reward/Risk ratio.
As we can see there is a contraction and a triangle to break before to look for positionning, when the price will make the expansion. We take money on the bull or on the bear side
Here's a quick lesson on how to look at trading ranges with TSLA and FB as an example. Expansion to contraction is an excellent tool to help you go a little further on your trading journey. Learn more by joining the CTP Group. We will teach you how to use charts to do a top down approach on any stock in under 5 minutes just for joining. Look to get 1-4 emails...
After a huge bearish phase, the price has generated a simmetric triangle that is to be seen as the result of the congestion of the fluctuations. Both R.S.I and Stochastic haven't reached the overbought zone. However, I suggest paying attention to possible bearish crosses in the aforementioned second oscillator. The breakdown of the support or of the triangle...
higher time frame is showing range bound price action- negative divergence in rsi closer look at mid time frame shows the transition from a range expansion to range contraction and selling volume pressure being applied along with negative momentum lower time frame shows price action in that same range contraction apply pressure to the support area with multiple...
-long term trend- uptrend and showing strength -intermediate timeframe shows trend is in an uptrend but slightly flattening -volatility is contracting.. pressing up on resistance area of 29.9x -not paying too much attention to rsi here because of stock showing strong trend strength. -positive volume pressure being applied -shorter timeframe is showing price action...