There's not much room left to trade in this range for "quick" trades. We can hit one last one with 2:1 risk/reward.
I have been opening a half short position at the top of the range after closing out the long to profit as much as possible off this pattern.
Looking at past summers and this wedge I can be optimistic for a big move.
The trade: as mentioned before, short term we can sell puts because our mission is to get a long position. For the quick play, a long position with stops below the wedge for the short term continuation of the trend. Range is getting tight so I won't be betting the farm until there's a clean break with confirmation of a new trend.
Looks like we can take another stab at the range bound wedge run.
It is getting fairly tight - faked out once so far to the downside. Lots of volume on here and usoil futures, could be indicative of a bottom for the down trend, not going to look too deep into it since we know how many bs contracts are open.
Possibility of a rough head + shoulders which would...
For the long term I am absolutely long crude + us oil companies due to fundamental reasons but the chart at the moment looks like it is about to breakout down. I have already a short built from ~11 but this is a new trade to play the breakout.
crossing short term MA and the big blue holding as resistance at the top of the wedge. If we break through that there is significant upside coming; downside is a trade with the trend to at least the bottom of the wedge
Tight range, tight moving averages, recent usd/cnh volatility.
Note the dark blue MA which may act as support for the bottom of the wedge. We want a candle printed below it for confirmation of support collapsing before we enter. We don't want to be first in the trade; we want to be correct.
Range tightening, clumping moving averages, and extremely choppy.
It looks like this pair is like USDSEK; low liquidity and plenty of chop which means fake outs will probably stop us out before it actually moves. This means that we will probably break even on the downside breakout but if it goes to the upside we have potential for proper gains.
Break down through the bottom of the wedge. This is a higher time frame than my usual trades; not 100% conviction on the shape of the wedge. Moving averages are clumped and range has recently tightened.