So basically the bigger picture it looks like a broadening wedge, but inside it, seems it formed a rising wedge which got broken. The dotted white line looks like a support area but a little bit upwards seems like a small resistance.( the short white oblique line) . And the last candlesticks looks like a bullish harami formation. How would you trad this guys? Thank you
You always get different patterns overlaying each other in different time-frames when seen through the lens of the time horizon of your plan for your trade. So, taking extreme examples, a chart can be in a range that has taken 5 months to get to where it is today, at the base of the range: but for the last week it has been setting up a double top on the 4-hourly chart. If you want to hold for another 1-2 months, trade the range long, if you want to hold for 1-2 days, trade the double top short.
Of course, its better if both align in the same direction but not essential. One does not cancel the other.
Yes indeed, that happenned to me a lot of times. Drawing to many S/R lines. Sometimes I leave a pair without even trading because of too many resistance lines. You know, when i started doing TA everything seemed to be so clear. I did the babypipes school and after all those patterns it’s not so clear anymore.
