What happened to this wedge?

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

Hi guys,

I was practicing price action on my demo account lately.

Yesterday I took a buy trade for 60 pips on AUD/USD.

I was drawing this downtrend channel and a rising wedge which usually indicates (when breaking the lower line) a continuation of the trend.

Now I saw that the upper line was broken and quickly began to fall back again.

How’d that big bullish inpulse happen? Where could have been good entries? (Guess after the closing of the big bearish candle…) It confuses me a bit.

Thank you in advance.

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2

There where a lot of news releases for AUD last night.

I haven’t checked yet but if the first news release was positive it can shoot the price up, if it’s then followed by a negative announcement it can send it right in the opposite direction.

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3

yup, it was definitely the news, there was AUD news around 7pm last night

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4

yes definitely news, I missed the NZD CPI two days ago and I just worked out of my mess this morning, with a handsome equity gain for my patience.

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5

Alright thanks a lot.
So I guess there‘s nothing wrong with my wedge?
Could the break be predicted because of the head and shoulder neckline break above the trend line?

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6

Assuming your pointing out the inverted almost H&S pattern it was a trend continuation until the news hit.

7

I predicted it was going to drop at that time based on where price was at that time. It was literally on a trendline.The 1Hour confirmed it for me

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8

Agreed I use the day chart, Looking for about 50 Pips before the NY open.

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9

Yes I think the news that released for AUD also giving impact to movement of this currency, although sometimes pattern on technical analysis already figure out the valid formation, but sometimes news influenced on the market and breaking rules technical analysis

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