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 ...
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 ...
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.
Price range is getting smaller showing the possibility of a breakout. Moving averages are all tight so not sure how far it will move; it could be indicative of a big move if they all act as support/resistance.