VHT repeating patterns moving into a wedge.
We have a repeating set of triangles that have moved into a broader triangle. Each of the triangles are roughly the same length and the move as the first ended is very sudden. If this is a repeating pattern we will be looking for a spike in volume as the move begins. The move should begin either in the next candle or the one thereafter, afterwards I would begin to think that the pattern has become too long and will fail.
So I’m looking for in the next two candles for the upper downsloping trendline to be broken , price action to remain above the 20 weekly MA, price to break the green resistance line at 1.675 and for a volume spike to occur. All at the same time. Not much to ask for really.
Failure will be price action breaking below the lower blue upward sloping trend line and the red stop line at 1.50.
I will point out that there has been an overall decrease on volume at the moment which doesn’t concern me. My philosophy is that price velocity increases on either increasing or decreasing volume. It doesn’t happen on flat volume so this is still in play despite the drop in overall volume at the moment.
So I’m looking for in the next two candles for the upper downsloping trendline to be broken , price action to remain above the 20 weekly MA, price to break the green resistance line at 1.675 and for a volume spike to occur. All at the same time. Not much to ask for really.
Failure will be price action breaking below the lower blue upward sloping trend line and the red stop line at 1.50.
I will point out that there has been an overall decrease on volume at the moment which doesn’t concern me. My philosophy is that price velocity increases on either increasing or decreasing volume. It doesn’t happen on flat volume so this is still in play despite the drop in overall volume at the moment.
Comment:
Very nice so far. We’ve hit a support level from the previous wedge, but this could still get another 20% or so if it plays out textbook. There has been no news spike, and the move so far seems to just be from the recent quarterly which had no substantive news to push it (aside from a lack of bad news of course) so there could be a punch in it yet.
Comment:
Well that was a nice one wasn't it? I hope you got out at 2.10 like I did!