ETHUSD FORMED A BEARISH WEDGE. READY TO REVERSE?📉
ETHUSD has been moving bullish since July 9, forming the bearish wedge, supported by the bearish divergence. Today the price started to breakdown this pattern.
A bearish wedge is a bearish reversal pattern in an uptrend, where the price forms higher highs and higher lows within converging upward trendlines, signaling weakening bullish momentum and a potential downward reversal. To trade, identify the wedge with declining volume and confirm with RSI or divergence. Sell or short on a breakdown below the lower trendline with a volume spike. Set a stop-loss above the recent high or upper trendline. Target the wedge’s height projected downward from the breakdown or the next support level with a 1:2 risk-reward ratio.
The decline towards local support of 3,500.00 is highly expected. If the bearish impulse gets strong enough, we may see the decline towards 3,000.00 support level.
ETHUSD has been moving bullish since July 9, forming the bearish wedge, supported by the bearish divergence. Today the price started to breakdown this pattern.
A bearish wedge is a bearish reversal pattern in an uptrend, where the price forms higher highs and higher lows within converging upward trendlines, signaling weakening bullish momentum and a potential downward reversal. To trade, identify the wedge with declining volume and confirm with RSI or divergence. Sell or short on a breakdown below the lower trendline with a volume spike. Set a stop-loss above the recent high or upper trendline. Target the wedge’s height projected downward from the breakdown or the next support level with a 1:2 risk-reward ratio.
The decline towards local support of 3,500.00 is highly expected. If the bearish impulse gets strong enough, we may see the decline towards 3,000.00 support level.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Join me, I'll guide you to PROFITABLE TRADING💵!
Telegram Channel: t.me/forextradersliveofficial
Telegram Channel: t.me/forextradersliveofficial
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.