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Wedge

Does news events affect price action analysis in trading ?Hello everyone: Today I want to discuss news events in trading. Often when a news event comes out in the market, we get some sort of volatility and we get a strong spike/impulse. However, does news events affect our ways of understanding price action analysis ? Let's take a look at a few examples of the recent FOMC volatility that happened in the forex, indices and commodity market. Most of the market had a sharp quick move to one direction, hinting a sign of weakness in USD/JPY..etc. However, all of them ended up with a reversal impulse, and recovered all the price from the volatility. So, what can we take away from this ? News certain creates volatility, but not the overall price action trending direction. We may get a temporary short term move, but eventually the market recovers it, and resumes its original direction. Often beginner/newcomer traders will try to “jump” onto the news momentum, but usually end too late, and they will take a BE or losses. We can not control the outcome of the news or whether the news will be positive or negative towards our trades, but what we can control is our entry, SL, TP, risk management, emotions and mindset. Any questions, comments or feedback welcome to let me know :) Thank you Jojo
Education
by jojofang0901
18
Description of the Wedge PatternsHi every one The wedge pattern can be used as either a continuation or reversal pattern, depending on where it is found on a price chart. There are two types of wedge pattern: the rising (or ascending) wedge and the falling (or descending wedge). 1-Identifying the rising wedge pattern in an uptrend : A rising wedge in an uptrend is considered a reversal pattern that occurs when the price is making higher highs and higher lows. As the chart Pattern number one shows, this is identified by a contracting range in prices. The price is confined within two lines which get closer together to create a pattern. This indicates a slowing of momentum and it usually precedes a reversal to the downside. This means that you can look for potential selling opportunities. -Identifying the rising wedge pattern in an downtrend : A rising wedge in a downtrend is a temporary price movement in the opposite direction (market retracement). As in the case of a rising wedge in a uptrend, it is characterised by shrinking prices that are confined within two lines coming together to form a pattern. It indicates the continuation of the downtrend and, again, this means that you can look for potential selling opportunities. 2-Falling wedge : The falling (or descending) wedge can also be used as either a continuation or reversal pattern, depending on where it is found on a price chart. This lesson shows you how to identify the pattern and how you can use it to look for possible buying opportunities. -Identifying the falling wedge pattern in a downtrend: If the falling wedge appears in a downtrend, it is considered a reversal pattern. It occurs when the price is making lower highs and lower lows which form two contracting lines. The falling wedge usually precedes a reversal to the upside, and this means that you can look for potential buying opportunities. -Identifying the falling wedge pattern in an uptrend: A falling wedge found in an uptrend is considered a continuation pattern that occurs as the market contracts temporarily. It indicates the resumption of the uptrend. Again, this means that you can look for potential buying opportunities. Traders, if you liked this idea or have your opinion on it, write in the comments, We will be glad. Thank you for seeing idea . Have a nice day and Good luck.
COINBASE:BTCUSDEducation
by CobraVanguard
7
Wedges Pattern by Rocket Bomb 🚀💣Hello, my dear friends! As I promised, today we are talking about Wedges Patterns! Link on a good view👇🏻 Wedges are some of the main classical figures in technical analysis . There are two types of wedges: - Rising Wedge pattern - both sides of the figure are directed up; - Falling Wedge pattern - both sides of the figure are directed down. ✔A rising wedge pattern is formed when price increases slow and a tapering pattern forms. Price can't go longer rise further, but at the same time, as if they continue to gradually update local highs. That's suggests, that the pressure of sellers (bears) is gradually increasing in the market. ✔A downward wedge pattern is formed when price decline slows down and a tapering pattern is formed, and volume indicators gradually decrease. Prices are no longer able to decline further, but at the same time, as if they continue to gradually update local lows. That's suggests, that the pressure of buyers (bulls) is gradually increasing in the market. 💡My picture shows, that the “Wedge” directed 👇🏻 down is a bullish 🐃 model, since the trend is up and the price has broken the resistance line (went up). And the “Wedge” directed up ☝🏻is a bearish 🐻 model, as the trend is directed down and the price has broken through the support line (went down). These signals are strong and YOU can trade on them. 💣But if the price in both cases would go in the opposite direction (the opposite direction to the trend), then this would be a weak signal. Trading in this case is not recommended, as it's too risky. 🙅🏻‍♀️ Guys, thanks for reading me!🙏🏻 Subscribe and stay with me forever🧡 I'm appreciate Your support🥰 Your Rocket Bomb🚀💣 PS : 👇🏻👇🏻👇🏻Below I put links on my previous ideas 👇🏻👇🏻👇🏻
BITSTAMP:BTCUSDEducation
by RocketBomb
8
Let's See The Power of Triple BottomThere is a MainNet and it planned to launch until 15 December 2020! Stacks 2.0 is coming at the same time as MainNet. Stakers will earn BTC while stacking STX after Stacks 2.0. You can confirm it from Blockstack's official announcements. Now, let's look at the chart. I'm observing triple bottom formation. Also STX in oversold zone. Indicators which in oversold zone are Bollinger Bands %B , Relative Momentum Index, Relative Strength Index. My discourses, my analysis and my drawings are definitely not investment recommendations. Cryptocurrency trading involves high market risk. Please take care of your transactions. My analysis is for educational purposes, I am not responsible for your losses.
Education
by calderontr
SOYBEAN Higher Time Frame Outlook on structureHello traders: Looking at soybeans from the higher time frame perspective and its price action structures. We see strong bearish impulse down from mid of 2018, and has been in this larger channel like structure ever since. Price has been consolidating for these few years, and finally breaking to the top in the recent times. What I like about the price from a structure point of view is that we just broke the previous top, but on the lower time frame the price broke up in a corrective structure. I see this type of price action over and over again. Price breaks up, catching a lot of buyers, then see a strong sell momentum down. I wouldn't be surprise to see some bearish impulse from the lower time frame, to bring the price right back into this larger channel structure, and we can potentially see the next bearish move from the top. For now, happy to be a bit more patient, and wait for price to develop a bit more. thank you
OANDA:SOYBNUSDEducation
by jojofang0901
6
What is a pennant?A pennant is a continuation pattern. Statistics of pennant patterns - In 75% of cases: a pennant’s continues in the same direction. - In 15% of cases: a pennant’s continues tries to continue in the same direction but pulls back. - In 55% of cases, a pennant continues in the same direction and reaches his target. Notes on pennant patterns - pennants with a narrow base perform better - A pennant is stronger if there are no false breaks (false pattern exits). - If their are pullbacks after exit from the pennant: its bad for its performance.
MIL:REYEducation
by Gst4r
How To Trade a Falling Wedge Chart Pattern - Educational PostIn the above example you can see a continuation chart pattern. After a strong rally, price start to reverse and formed a falling wedge. How to trade the falling wedge? 1. Wait for a breakout. 2. Enter at the retest of the breakout. 3. Set your stop-loss bellow the market structure. 4. Set your target at the higher high of the falling wedge. This tutorial contains educational material. Please hit the LIKE button to support me! FOLLOW ME if you liked this post and want to see more educational post and trading ideas. Thank you!
Education
by wolf-lamb
5
Binance Hot list coin July, 8th 2020 : XRPUSDT #1A simple deduction of current price action and the chart pattern of ripple. With the structure of bullish falling wedge pattern, there is a possibility of the price to moves up higher and challenge each fib levels especially the golden pocket as a strong resistance. The fact that there is a bullish divergence on RSI and MACD making this structure is very interesting. The key movement is to breaks out of the white resistance trend line and the upper line of this falling wedge.
Education
by junosats
Binance Hot list coin July, 6th 2020 : KNCUSDT #2On the 2 hours chart, the price is trending slightly above the 55 EMA which acts as a strong dynamic support (yellow). Beside that the price is now forming a strong bullish falling wedges. This is however could be the action to complete ABC zig zag correction structure. I will only catch the B wave which align with the golden pocket zone as well before shorting the C wave. Just like usual, open long position when the price breaks out of the upper line of the falling wedges.
Education
by junosats
🏋️ 10 STEPS HOW TO DRAW TREND LINE IN 5 MINUTES [WRX — WazirX]Hello, have you familiar with 10 steps technic how to draw trend line in 5 minutes?! — I am not 😅 But in this 7 min video I explained how to make Simple TA for any asset using TradingView basic tools to understand where it goes. In this video: 1. How to draw trend line 2. Descending Wedge (Falling Wedge) 3. WazirX WRXBTC coin analysis, entries and targets. Previous WRX analysis and HOW TO MAKE TA in 10 min: Have fun, enjoy your trading This is Artem Crypto
WEducation
by ArtemFuturesTrading
10
Why I decided to change my trading style and method after years Why I decided to change my trading style and method after years: First of all, I am not here to bash and talk negative on other traders who are consistent traders who do use these methods to their success. I am sharing my on personal journey and opinions, based on past experiences and past journal/history. By no mean I am saying my current style or strategies are better. I am creating this post for educational purpose only, no offense/criticize is done here to anymore. 1. I actually used to trade with S/R, supply/demand zone, and small number of indicators (MACD, EMA, RSI...etc), you can look back at my tradingview post years ago. 2. I have been somewhat consistent with those strategies and methods, and do generate profits within the years that I have adapted those type of strategies. 3. The time when I decided not to implement those methods anymore, is because when I back test and look back at my trading journals and history, I find out ways that I could improve my trading potential. 4. I realized many of these S/R, indicators are actually acting as an invisible barrier for me when I trade. 5. Many of my trades in the past have been short lived due to me sticking to my trading plan and exit a trade when the price hits a certain "criteria" such as 50 EMA, some S/R zone, or fibs level...etc.. 6. While its good to follow and stick to my trading plan and risk management, but when I do self reviews on past trades, I begin to find out there is a lot of profit I am leaving on the table. Or, poor trade management due to similar issues. 7. I begin to do in depth research on these topics and come to my personal conclusion. 8. The true is, I dont need any of those indicators and S/R level/zones on my chart. Simply remove all of them and see how the price is on a raw level. 9. I fully understand when the price is in its impulsive phrase, none of these indicators or levels can "resist" or "support" the price. The price simply breaks them or "impulse" through them. When the price is in its corrective phrase, this is when those levels or indicators work since price is in a correction nature and allowing those levels or indicators to "catch up" to the price. 10. When I dig deeper and more research and analysis, I begin to see the market on a totally different level. I realized how the market moves, and why it moves. 11. There is a saying, "Dont just believe what the others are telling you", or "Try it yourself before saying it out loud". I certainly put in time and effort into this and have done substantial amount of work to be confidence to express here. I hope this brief post is helpful for those traders who are still trying to identify how to trade and what to adapt in their trading plan. I welcome any positive/constructive comments, feedback, suggestions or opinions. Thank you
BITSTAMP:BTCUSDEducation
by jojofang0901
3
RISING AND FALLING WEDGES Good afternoon. Today we are looking at another chart pattern RISING AND FALLING WEDGES . Let’s get on it. Wedges can either be continuation or reversal patterns. Just to refresh your memory, continuation patterns are formations that show side way price action, signalling a temporary pause in the trend; whereas reversal patterns indicate a change in the trend. Whether wedges are continuation or reversal, it’s not really significant, what matters is spotting the pattern, and knowing how to make money out of it. Wedge patterns are classified as either RISING WEDGES OR FALLING WEDGES. Rising wedges, as the name implies, slopes upwards, and they eventually break to the downside Graphically, rising wedges look like the above sketch chart(Sketch 1) notice how the slope of the support line is steeper than that of the resistance. This indicates that higher lows are being formed faster than higher highs. That is precisely how the wedge pattern get to be formed. The inverse of the rising wedge is the FALLING WEDGE , which usually breaks to the upside.(Sketch 2) Just like on the rising wedge pattern, the falling trend line connecting the highs (resistance) is steeper than the trend line connecting the lows (support). As mentioned earlier, rising and falling wedges can either be continuation or reversal patterns. But whether they be continuation or reversal patterns is not our focus, our focus is on making money when these patterns ‘BREAKOUT’ . If you case you are wondering what we mean by ‘breakout’; consider the chart above(Sketch 3) of a falling wedge and a rising wedge, and how they typically break to the upside and downside, respectively Now let’s look at how we can make money out of a RISING WEDGE PATTERN. Let’s start by considering the chart (Sketch 4) Now, when entering a Short trade based on a rising wedge, it’s important to wait for a break and close below the support line. After this close, aggressive traders can ‘pull the trigger’. But a more conservative way to enter the trade, is to wait for a retest of the previous support (now resistance) before pulling the trigger. In this case the sequence will be something like this: 1. Wait for a close below support 2. Wait for a retest of the previous support 3. If the previous support act as resistance, then enter short trade A Long trade based on a falling wedge is entered on the same principle (but in reverse), that is, 1. Wait for a price close above resistance 2. Enter Long trade at that close (for aggressive traders) 3. For conservative traders, wait for a retest of the previous resistance (now support) before pulling the trigger That’s ENTRY, now let’s look at placing stop loss and take profit levels when trading wedge patterns. Take profit target should ideally be the height of the wedge formation. Consider the chart above(Sketch 4) Stop loss orders should always be placed at a level that if hit, it will invalidate the trading set up. In the case of rising wedges, this level will be the area just above resistance. The opposite is true for falling wedges, place stop loss just below support. Thanks for your Likes and Support.... Until next time, let’s keep if Profitable!
COINBASE:BTCUSDEducation
by TaherJalili
10