The Descending Broadening Wedge - Forex Opportunities

The Top 12 Chart Trends You MUST Learn to Trade successfully in 2020

The Top 12 Chart Trends You MUST Learn to Trade successfully in 2020
The Top 12 Chart Trends You MUST Learn to Trade successfully in 2020

If you want to be a proficient technical analyst, you've got to practice understanding chart trends.
Chart patterns, with great profits, can generate very reliable signals and reward traders.
We cover the top 12 chart trends with examples in this article and show you how to use them and how to make money trading with them.

The Head and Shoulders Pattern
The head and shoulders pattern is considered to be one of the most effective models for reversal. It begins when the price rises to the top after a long bullish run, and pulls down.
Shortly thereafter, the price increases again to a slightly higher rate but again decreases.
Finally, for the third time, the price goes up but only hits a point of the first high.
It pulls back after that and completes the pattern.

Head and Shoulders Pattern 2020

Inverse Head and Shoulders Pattern
There is also, as with other trends, an inverse head and shoulders that
happens after an prolonged downtrend and suggests that the price will go up.

Inverse Head and Shoulders Pattern 2020

Cup And Handle Patterns

A pattern on the cup and handle is a bullish pattern of continuity.
It is made up of two parts-a cup and a handle.
When a cup is full, the handle is shaped on its right side.
If a breakdown on a line of resistance follows, and traders find it a precursor for an uptrend.

Cup And Handle Patterns 2020
Cup And Handle Patterns (b) 2020


As you can see, there is nothing difficult about recognizing and trading a 'Cup and Handle' pattern.
Upon entering the trade on a resistance retest, you can put your stop loss below a handle's low and let the trade do its job.

Ascending Triangle
One of the most common patterns among traders are both ascending triangles and descending ones.
We should take a look at it from more of a rational viewpoint to really help you understand this trend.
The ascending triangle is formed when the price is incapable of breaking a resistance but, at the same time , higher lows form.

Ascending Triangle Pattern 2020

As you may see in the above example , the price bounces from resistance but on each bounce it is unable to make a lower low.
That gives us a bullish signal that a potential break is about to occur.

Ascending Triangle Chart Pattern 2020

Descending Triangle
Inverse to the Ascending Triangle, the Descending Triangle is noticeable when
the market bounces from support but can not hit higher altitudes.

Descending Triangle pattern 2020


Descending Triangle Chart Pattern 2020



The Falling Wedge Pattern
Falling wedge is a bullish trend of reversal that happens most of the time while
the price is going down but we can see divergence on one of our oscillators.
That means that while the price goes down, sellers
get tired and we can expect a reversal soon.

The Falling Wedge Pattern Chart Pattern 2020

Rising Wedge
Reversal of Dropping Wedge, price is moving higher
but in your oscillator you can find weakening clues.

Rising Wedge Chart Pattern 2020

Double Top Pattern

Typically the double top pattern is made at
the end of the trends as a toping shape.
It is a bearish reversal trend characterized by the peak which is
followed shortly by the second at the same or very close price point.
The double top pattern is true until
the price breaks below the highs rendered support.
We use the same word "neckline" that is
used for the Head and Shoulders pattern as well.
You may either join the trade after the
neckline is broken, or wait for the neckline's retest.


Double Top Pattern Chart Pattern 2020


Double Bottom Pattern

The Double Top opposite is the Double Bottom pattern
that is made at the bottom of the downtrend.
The Double Bottom is defined as having two
bottoms at a price point equal to or identical.
Just as with the Double Top pattern, you can
enter either at the "neckline" break or at its retest.

Double Bottom Pattern Chart Pattern 2020



Flags

Flags are technological patterns that can be understood
as a pause in the trend that underlies.
Following a rapid market pattern, flags are spotted as
consolidation, and they signify the continuation after the breakout.
We have a Bull and Bear flags, just as with all map trends.

Bear Flag

Bear Flag Chart Pattern 2020


Bull Flag

Bull Flag Chart Pattern 2020


Conclusion
Classic chart patterns are one of the oldest sections of technical analysis and have been proved several
times as a practical way to assist technical traders in determining the next course of the market.
That being said, when making trade decisions, a trader
should not neglect the context and current market conditions.

Eva " Forex " Canares .
Cheers and Profitable Trading to All.



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USD/CHF Weekly Outlook, (after a massively successful trendline bounce)

Last week I posted a potential trendline bounce setup on USD/CHF. You could say it worked out rather well.
It took a couple of days to hit my target of 0.94, but I'm actually still in this trade, sort of. I've taken most off my position, and then added again when we returned to 0.952 briefly. Having said that, I was probably caught up in the heat of the moment, and 0.95 would have been a better re-entry point.
There's also a case for the bears here, so let's look at the set ups for USD/CHF.
8Hr Chart:
http://i.imgur.com/bZCNoTM.png
That last 8Hr candle is a bull's worst nightmare, so why am I still in this trade? The break of the wedge is encouraging, sure, but the larger wedge top has halted advances for now. We could easily see 0.9500 or even 0.9420/00 early in the week if the dollar rally loses steam. But here's why it might not. That means it's time to...
Talk About Fundamentals!
Why did the US Dollar rally so much? There are a lot of ideas floating around. It wasn't broad-based risk aversion, although it looked like it if you were watching the Aussie and the Pound. What most likely caused it was the search for yield, as investors lost confidence in Japanese government bonds, and the US economy started to look even healthier. Good jobs numbers mean a chance of tapering QE sooner than expected, which is one of the only things propping up the riskier assets.
Stocks didn't follow through, which leaves me suspicious. The Yen crosses were actually up (although in a much more muted fashion than USD/JPY). But the most telling sign comes from EUUSD.
I'm gonna get a little ahead of myself here and take a page from Jamie Saettele's book (DailyFX). EUUSD and USD/CHF have always been highly negatively correlated. That correlation breaks down sometimes, but it's usually there. When we have highly correlated assets, we can look to the correlated asset for confirmation of a big move in the first asset. A good example is gold and silver. If gold makes a new high but silver does not confirm that new high with its own, then chances are the next move in gold is down.
So if we get a night high in USD/CHF, we're looking for a new low in EUUSD. And we got it.
Price went briefly down to 1.2950. Here's the 8hr chart of EUUSD showing USD/CHF in white:
http://i.imgur.com/Xmcn3Bq.png
So the next move for both of these, in the medium term, is probably a continuation of Friday's moves. However, as you can see EUUSD looks to be bouncing off its trendline, and USD/CHF failed to break close above the larger wedge top. This leaves some doubt as to this week's likely moves.
USD/CHF Trade Set Ups
There's a case for both bulls and bears. If you believe that this dollar move was impulsive and likely to retrace, there are sell signals aplenty. Trade would be simple:
Sell at market, with a stop above 0.963, targeting 0.945 initially (former wedge top which could act as interim support) and then 0.9300 (ascending wedge bottom).
However, I believe that what is happening is something of a paradigm shift, as investors finally start to click that their best chance of reliable yield is in US Treasuries. I would like to see the move confirmed by a EUUSD trendline break, and a similar move from the S&P500. If we do get that, expect the larger wedge to break, and for this pair to enjoy a lot more upside.
I am currently long from 0.9271. I took a third off at 0.94, another third off at 0.9550, my final target is open, and I am so fucking smug right now. I added at 0.9520, and will add a final third (bringing me back to the original position size) if we see the 0.9500/0.9460 area again. I intend to hold this trade until I am stopped out, either by a full retracement, or because my trailing stop was hit. I will trail the stop manually whenever new lows are formed.
This means I will be trailed out by the creation of a lower low - an indication that party time is over.
Happy trading!
submitted by NormanConquest to Forex [link] [comments]

ASCENDING BROADENING WEDGE!! GREAT CHART PATTERN TO HAVE IN YOUR TOOLBOX! Trading the Ascending Wedge, Bullish flag patterns How to trade the Wedge Forex Pattern - Traide Compass Alerts Importance of Falling and Rising Wedges in Trading w/ Examples 3 Most Reliable Bullish Chart Patterns FOR STOCKS AND FOREX TRADING Live Trading Example 11 - Rising Wedge Chart Pattern

The currency pair has been advancing within an ascending wedge pattern that began to form after the pair crossed above its 200-day moving average. The RSI is just above 50 and pointing down. The pair is likely to find support on the lower trendline and bounce towards its 2020 high of 0.7275. If price can break above the 0.7275 resistance, it could potentially reach for 0.7395, a level last ... It has been my experience that wedge patterns are one of the most profitable setups in the forex market. Wedges look like (and in fact, are) extended triangles. Wedges are made of two trend lines that are drawn just like a triangle. The difference between wedge patterns and triangle patterns is simple: the trendlines in a wedge pattern point in the same direction. Ascending triangles have flat ... The ascending wedge pattern (more often referred to as the rising wedge pattern) trading strategy refers to a rather bearish trading phase where the trade in question is likely headed in a downward direction. Herein you have wedges that slope upwards with an impending downward spiral going forward. This pattern is best understood when looked at ... The forex rising wedge (also known as the ascending wedge) pattern is a powerful consolidation price pattern formed when price is bound between two rising trend lines. It is considered a bearish ... In forex, both the descending broadening wedge and the ascending broadening wedge are relatively tricky patterns on which to trade. Each has to be looked at case by case. This makes them more open to manual trading. To read about the ascending broadening wedge see here. 4xBUNDLE. Ebook Trader's Pack 4x Popular eBooks. Four complete and up to date ebooks on the most popular trading systems ... This pattern in a Forex chart represents a potential market correction on a prevailing trend. There are two types of wedges: types of wedges: ascending or rising wedge and descending or falling wedge. In this blog post, we will discuss the structure of the wedge pattern, how to spot it, and most importantly, how to trade and make profits from it. Table of Contents. 1 Characteristics of the ... Learn how to trade "Wedge" (Falling wedge & Rising wedge) chart patterns in the Forex market, in-depth tutorial with illustrations and real trading examples.

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ASCENDING BROADENING WEDGE!! GREAT CHART PATTERN TO HAVE IN YOUR TOOLBOX!

3 Most Reliable Bullish Chart Patterns FOR STOCKS AND FOREX TRADING PATTERN 1: FLAG/PENNANT PATTERN 2: ASCENDING TRIANGLE PATTERN 3: WEDGE PATTERN ascending broadening wedge!! great chart pattern to have in your toolbox! going through all the characteristics of this chart pattern! Risk Disclosure : Futures and forex and Options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk ... How to trade the Wedge Forex Pattern Kindly note that I no longer use nor subscribe to the Traide Ringer, however, do enjoy the video. The Wedge Forex Pattern in my opinion is one of the most ... This is an example of a real Forex trade where Damyan trades the full potential of a Rising Wedge chart pattern. License Creative Commons Attribution license (reuse allowed) Break down two trades we made using the ascending wedge, or the bullish flag breakout patterns, as well as give huge shoutouts to my members who banked on them! Visit KAFINVESTING.COM to start ...

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