Risk Disclaimer

Risk Disclaimer: Trading is risky! Never trade money you can not afford to lose! Site content is only personal opinion and never a Trade Recommendation! Futhermore the blog content needs to get reviewed to analyse whether it is up-to-date and still appropriate in the authors view.

Wedge Pattern

Trading the Wedge


Euro Dollar Chart Analysis



head and shoulder pattern
Daily Head and Shoulder

Wedge Pattern on the Euro Chart


During recent trading days the Euro formed a kind of up trending wedge pattern on the daily/ 4-hour chart. The wedge pattern found resistance at the daily low of June 1st (pink line) and the trading price zone of the recent consolidation (green daily circle) and support at the 127 % butterfly target and the 61,80 % weekly fib extension.

The Euro broke below the rising pink daily trend line and market cleared the stops below the recent daily low (13 of July-blue line). The  wedge pattern formed three rising highs (happens often) before market turned around.



forex chart analysis
4-hour


The 4-hour chart (above) shows the typical timing setup (red circle). The Euro broke below the daily S1, yesterday's low (red line) and the rising daily trend line (pink line) after the prior 4-hour candle closed at support (respecting it) and the new 4-hour candle started (not immediately).

The hourly chart (below) shows that the price zone of the bull flag (green circle) provided some support yesterday (9-10 a.m.). Yesterday's two marked candles with the red ellipses show some bearish pressure. The first hourly candle marks the third high but market retraced most of the hourly trading range (rejection) and the second marked candle is a doji (also kind of evening star pattern). Today, the Euro formed a consolidation between the daily and weekly pivot but market created lower highs and a lower low before the Euro broke below it.


rejection candle, candle pattern
1 hour Euro Dollar Analysis



The 5 min chart (below) shows how price reacted at support/ resistance and some consolidations whereby the consolidation at about 10 a.m. GMT had the typical three-wave structure. The marked candle at 2 p.m. (red ellipse) between the two consolidation patterns shows that the break of the red support line occurred with the beginning of the new hourly candle (Timing). The daily S2 provided support at 2 p.m. and changed its role to resistance at 4:45 p.m..

lower lows, lower highs trend
5 min Euro Dollar Analysis

No comments:

Post a Comment

Back to top