EURUSD ---> rising wedge and a break down possibility

已更新

Hello everyone,

I would like to share my analysis on a chart that depicts a completed rising wedge pattern. The rising wedge is a bearish pattern that often signifies a reversal of the current trend. The pattern is formed by drawing trend lines that converge as the price consolidates within a triangle-like shape.

Based on my observation of the current chart, I believe that the price will continue to compress until it reaches the pink area, which represents the liquidity pool.

Furthermore, it's worth noting that there have been a lot of stop-loss orders gathered, indicating a potential downward movement. This can be attributed to the fact that traders often set stop-loss orders at key technical levels to minimize their losses in case the trade goes against them.

To support my analysis, I have also identified an RSI divergence, which is a technical indicator that measures the strength of a price trend. The RSI divergence suggests that the momentum of the price is slowing down, which supports the possibility of a downward movement.

However, it's important to remain vigilant and prepared for a potential break of the bottom line of the rising wedge pattern, which could lead to a different outcome. If the price breaks the bottom line of the pattern, it could signify a continuation of the previous uptrend.

I have indicated the target for this short position on the chart, based on my analysis of the historical data. If you're interested in further analysis, I recommend taking a closer look at the historical data that I have included as examples.

Thank you for your attention, and I hope that this analysis provides you with useful insights into the current market situation.

________________________________________

always do your research.
If you have any questions, you can write them in the comments below, and I will answer them.
And please don't forget to support this idea with your likes and comment

交易結束：目標達成

in process

交易結束：目標達成

kind of touched the target. if you get it close the position.