Analysis and Trading Plans for FOREX pairs, S&P, DJIA, etc.

Wedge Reversal at EURUSD

A Wedge chart pattern has formed at the major cross of EUR\USD. The Wedge is a reversal pattern that leads to the end of current trend and the beginning of move to the opposite direction. In this case, bearish movement. Unlike channel which signals that the trend is strong and healthy, the Wedge which consists of the congestion trend lines show that the trend is not well and is about to fade.

Double Bottom and Descending Triangle

USD\CAD Double Bottom
Double Bottom
A very precise double bottom pattern has appeared at the USD\CAD FOREX pair. The double bottom is a reversal pattern that usually indicates that reversal of trend and the beginning of a bullish movement. The size of the pattern is 30 pips and this is the projected target for the pattern.

Trading: Wait for price to pullback to the neckline before entering Long trades.

EUR\TRY Descending Triangle

12th August: AUD\USD Broadening Wedge

AUD\USD Megaphone Pattern

AUD\USD has witnessed steep downtrend in the last days, but the end is still yet to come. The downtrend has formed a Broadening Wedge pattern, that usually leads to a breakout downwards and continuation of the bearish downtrend. We would expect price to break the pattern and continue down. Do not trade breakout to this pattern as this is usually a poor signal.

10th August: EUR\USD Analysis

Wedge pattern

A Wedge appeared at EUR\USD pair, suggesting a reversal of this major pair. The Wedge is a classic reversal pattern that consists of two trendlines that are converging. Unlike the channel pattern, this indicates asymmetrical movement and a false trend that will result in a reversal.

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