What we can see on the chart is a rising wedge pattern. The price did not break out of the pattern yet. We are expecting that the price will break down and continue the previous downtrend. The stochastic shows us that the price is overbought but it is not pointing downwards yet.
How to trade: Enter the short position only if/when the price breaks down out of the wedge with the volume increase which would be the confirmation. Do not forget about the stop loss to protect your capital.
Komentar
⋅
The price came back into the wedge. Still expecting the breakdown. The idea is still valid.