I show what happened after two wedge formations. Note carefully wedges do not rule the market. The create probabilities not predictions. Wedges do fail.
There is hardly ever a perfect wedge pattern. The most recent one doesn't look too great. Price can fall out of a wedge and rock back in as you will see. Therefore trendlines drawn have to be estimates.
Bullish pennant forming. I will be awaiting a break and a retest and then entering, targeting previous key levels as a take profit zone. SL will be tight and placed just inside of the pennant formation.
I don’t normally trade on a Friday, but a pennant is a pennant. Tight stops ensure that fake-out fridays doesn’t hurt too much.
I can clearly see the market cycle forming the most common pattern.
We are at the peak of level 3, end of 2 weeks bullish cycle so I'm expecting consolidation in the Asian session, rise in London session, and the drop in New York session.
NOTE: That's only what I see, doesn't mean it will happen! Please DO YOUR OWN ANALYSIS before enter any trade!
Clues: Trendline breakthrough, 50 ema crosses the 200, tweezer bottoms on weekly TF, W formation.
We are at level 1 expecting level 2 to form this week. Look out the news for GBP this week!
Note: Please do YOUR OWN analysis before you enter any trade!
Good luck fellow traders ...!!
Just throwing some lines on HSBC (HSBA) .
We have a broadening channel, higher highs and lower lows on a 20 year timeframe.
Currently in a downward trend on the monthly, just about holding historical support.
This would probably be a good place to exit if we are expecting a market downturn.
"These formations are relatively rare during normal market conditions...