ETCETH: SHORT TERM TRADE IDEA: Rising wedge forming
Hey fellow traders,
Have a look at my analysis of
ETCETH
where you can see forming rising wedge, which is usually bearish pattern. Nevertheless IT IS still forming, so we can expect it to go up for quite some time.
Upper Resistance Line: It takes at least two reaction highs to form the upper resistance line, ideally three. Each reaction high should be higher than the previous high. We have multiple reaction highs hitting resistance line.
Lower Support Line: At least two reaction lows are required to form the lower support line. Each reaction low should be higher than the previous low. At this point we are hitting two reaction lows.
Volume: Ideally, volume will decline as prices rise and the wedge evolves. An expansion of volume on the support line break can be taken as bearish confirmation. Notice charted red line which nicely shows the fall in volume.
We are also hitting point of resistance at the very up of rising wedge
MACD and RSI are also confirming this pattern.
What I will do is to look for the full wedge to be formed, then sell. Then rebuy lower.
P.S.: Im not financial advisor. Take this as a purely speculative idea.
Have a look at my analysis of
ETCETH
where you can see forming rising wedge, which is usually bearish pattern. Nevertheless IT IS still forming, so we can expect it to go up for quite some time. Upper Resistance Line: It takes at least two reaction highs to form the upper resistance line, ideally three. Each reaction high should be higher than the previous high. We have multiple reaction highs hitting resistance line.
Lower Support Line: At least two reaction lows are required to form the lower support line. Each reaction low should be higher than the previous low. At this point we are hitting two reaction lows.
Volume: Ideally, volume will decline as prices rise and the wedge evolves. An expansion of volume on the support line break can be taken as bearish confirmation. Notice charted red line which nicely shows the fall in volume.
We are also hitting point of resistance at the very up of rising wedge
MACD and RSI are also confirming this pattern.
What I will do is to look for the full wedge to be formed, then sell. Then rebuy lower.
P.S.: Im not financial advisor. Take this as a purely speculative idea.