A wedge pattern can signal either bullish or bearish price reversals. In either case, this pattern holds three common characteristics: first, the converging trend lines; second, a pattern of declining volume as the price progresses through the pattern; third, a breakout from one of the trend lines. The two forms of the wedge pattern are a rising wedge (which signals a bearish reversal) and a falling wedge (which signals a bullish reversal). In this casw we have a falling wedge. RSI looks good aswell. use MAs for short sell targets, green trend lines represent support/resistance levels... anyways more on the falling wedge and some stats (we wont talk about the 20% staking rewards rn but keep yield in mind for this trade...) Falling Wedge When a security's or cryptos price has been falling over time, a wedge pattern can occur just as the trend makes its final downward move. The trend lines drawn above the highs and below the lows on the price chart pattern can converge as the price slide loses momentum and buyers step in to slow the rate of decline. Before the lines converge, the price may breakout above the upper trend line. A falling wedge pattern is seen as a bullish signal as it reflects that a sliding price is starting to lose momentum and that buyers are starting to move in to slow down the fall stats: Falling wedge statistics - In 82% of cases, the exit is bullish. - In 55% of cases, a falling wedge is a reversal pattern. - In 63% of cases, the pattern’s price objective is achieved when the resistance line is broken. - In 53% of cases, the price makes a support pullback on the falling wedge’s resistance line. - In 27% of cases, false breaks (false exits) appear. Notes on falling wedges - The contact points on the falling lines must be significant because otherwise it might be a flag. - The steeper the falling wedge’s trend lines (falling strongly), the more severe the upward movement is at the breakout (exit from the chart pattern). - False breaks (or false exits) give an indication of the direction of exit. If a false bullish break occurs, the exit will be downwards in only 3% of cases. Exploiting a false bullish break is therefore statistically low risk. - Retracements are generally twice as fast as the falling wedge was in its formation - Pullbacks are detrimental to the pattern’s performance. - The break out point (exit) generally occurs at 60% of the length of the falling wedge. - Very wide falling wedges give better performance than narrow falling wedges. For your information: A falling wedge is a reversal chart pattern. Its opposite is a rising wedge.
CHFJPY is currently consolidating within a symmetrical triangle pattern on the Daily time frame, indicating a potential rebound movement in the near future. My trading plan is to buy if the price successfully rebounds at the lower boundary of the triangle or breaks out to the upside from the pattern, which could provide further confirmation for a bullish trend. The profit target for this setup is in the 180 to 185 area, which represents the next resistance level. A stop loss is placed below the lower boundary of the triangle to ensure proper risk management. Disclaimer: This analysis is part of trading plan and does not constitute trading advice. Always apply proper risk management in every trading decision. Feel free to share your thoughts or request other analyses—just drop a comment!
Hyper extended tech driving most of SP gains combined with global uncertainty of Trumps next tariff plans; a correction seems due.
A breakout above the flag’s resistance, ideally on increased volume, confirms the pattern and suggests a continuation of the prior uptrend. Traders often use this setup to identify potential entry points, with stop-loss levels placed below the flag’s low and targets set based on the flagpole's height projected from the breakout point. Check the Chart Volume
This is very long term and I could be very wrong. I think we are going to see a big cycle out of these consumer heavy names as the spending has dried up all the way up to the luxury spender, see LV recent earnings. I am planning to short consumer staples! NYSE:CAVA NASDAQ:SBUX and more
The market will complete the curve whilst respecting the trend and the smaller trends are to confirm your entries during breakouts
Look for an inside day on Thursday for the S&P 500. This means that Thursday's price action will be within the range of Wednesday's price action.
The ASX 200 cash market is tantalisingly close to retesting its record high set in December. Traders are betting on an RBA cut in February (and 100bp of cuts this year) which is helping to support the market. Yet I doubt the ASX will simply break to a new high without a fresh catalyst. Comparing the ASX 200 cash and futures market and their key levels, I explain why. Matt Simpson, Market Analyst at City Index and Forex.com
EURUSD is trading inside a Channel Down pattern and is about to form a Death Cross on the (1h) time frame. All recent Death Cross formations resulted in a Lower Low. Trading Plan: 1. Sell on the current market price. Targets: 1. 1.03500 (bottom of Channel Down). Tips: 1. The RSI (1h) has formed the very same Lower Lows pattern as during all those previous Death Crosses.
While you may think AI isn't in a bubble, keep in mind that Nvidia is 80% overvalued. This explains why over 500billion USD evaporated in one day. The DeepSeek AI bubble burst has likely triggered a cascade of financial disruptions, ultimately leading to the decline in gold prices. As the AI sector collapses, investors bullish in AI stocks face massive losses, creating a liquidity crunch. They will need to cover margin calls and losses by liquidating assets including gold, to raise cash, mirroring past market crises. This forced selling will pressure gold prices downward, even as central banks increase their holdings as a hedge against uncertainty. Simultaneously, central banks are dumping U.S. Treasuries, why? This is due to deep economic and geopolitical uncertainties, a tougher global capital requirement by the BIS(Bank for International Settlements), thereby driving up yields. Higher Treasury rates make gold, which offers no yield, less attractive to investors seeking returns in a volatile market. The rising dollar, bolstered by higher rates, will further weigh on gold, as it becomes more expensive for foreign buyers. Note: Although central banks’ gold purchases provide some support, they are not enough to offset the broader market dynamics. The combination of distressed selling, rising yields, and a stronger dollar will overwhelm gold’s traditional safe-haven appeal. In this environment, gold will fall, demonstrating that even its status as a store of value can be undermined by systemic financial stress.