One of my favourite tools is wedge patterns.
Last year the AUDUSD was a dream to trade using the wedge pattern.
An 'ascending wedge' pattern approaching a level of resistance indicates a sell opportunity is coming up (reversal).
To trade the pattern you will wait for a break below the wedge line before selling, with stop losses above the highest level in the wedge.
A 'descending wedge' pattern approaching a level of support indicates a buy opportunity is coming up (reversal).
To trade the pattern you will wait for a break above the wedge line to enter a buy position with a stop loss below the lowest low in the wedge.
Give it a go!
Last year the AUDUSD was a dream to trade using the wedge pattern.
An 'ascending wedge' pattern approaching a level of resistance indicates a sell opportunity is coming up (reversal).
To trade the pattern you will wait for a break below the wedge line before selling, with stop losses above the highest level in the wedge.
A 'descending wedge' pattern approaching a level of support indicates a buy opportunity is coming up (reversal).
To trade the pattern you will wait for a break above the wedge line to enter a buy position with a stop loss below the lowest low in the wedge.
Give it a go!