This is my first published chart, so bear with me... (har har)
Looking back at the past year, we can see many wedges lasting a few days or weeks. It seems to me like a great trading strategy would have been to simply recognize the wedges when they form, wait for them to play out and open positions as soon as the wedge is broken (or just set trigger orders above and below the wedges and go take naps). Then once the positions are open set stop losses at the previous fib levels once they are crossed to prevent losing a lot of profit on bounces. Only 2 of the wedges I've drawn on this chart have broken upwards. Our current wedge is still undecided... and it might not even end up being a wedge. It does seem like we may break upwards through the year-long downtrend at some point in the next month or two, or again break down and make new lows.
Did anyone use this strategy last year? I wish I had!
Looking back at the past year, we can see many wedges lasting a few days or weeks. It seems to me like a great trading strategy would have been to simply recognize the wedges when they form, wait for them to play out and open positions as soon as the wedge is broken (or just set trigger orders above and below the wedges and go take naps). Then once the positions are open set stop losses at the previous fib levels once they are crossed to prevent losing a lot of profit on bounces. Only 2 of the wedges I've drawn on this chart have broken upwards. Our current wedge is still undecided... and it might not even end up being a wedge. It does seem like we may break upwards through the year-long downtrend at some point in the next month or two, or again break down and make new lows.
Did anyone use this strategy last year? I wish I had!