![]() ![]() What concerns the Take Profit level, it must be based on the technical levels below( If there are any). The correct Stop Loss should be placed above the last higher high established by the wedge before the breakout. After the breakout is confirmed(usually at least a 4H candle needs to close below the broken level) we can place a limit order to short the pair on a pullback giving us a better risk to reward ratio. After we correctly identified the pattern all we need to do is wait patiently for the breakout of the wedge to the downside. Trading the rising wedge pattern is pretty easy. The ascending wedge occurs either in a downtrend as the price action temporarily corrects higher, or in an uptrend. As a first step, you should eliminate all types of wedges that are present in the sideways-trading environment. Identifying a rising wedge is not so difficult. And it is applicable either for stocks trading mostly. The third point is seen more as a boost to the validity and effectiveness of the pattern, rather than a mandatory element. The decrease in volume as the wedge progresses towards the breakout. ![]()
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