1) The document discusses the bearish rising wedge pattern for shorting stocks. It provides examples of what the pattern looks like in charts and describes how price and volume behavior can indicate this pattern.
2) A key part of the pattern is a large volume sell-off followed by a weak, low volume bounce as the stock attempts to recover before rolling over again to the downside.
3) The document recommends looking for this pattern in stocks that are already in a downtrend and have gapped down after a poor earnings report. This sets up a bearish "power earnings gap" for the potential rising wedge pattern to form.
1) The document discusses the bearish rising wedge pattern for shorting stocks. It provides examples of what the pattern looks like in charts and describes how price and volume behavior can indicate this pattern.
2) A key part of the pattern is a large volume sell-off followed by a weak, low volume bounce as the stock attempts to recover before rolling over again to the downside.
3) The document recommends looking for this pattern in stocks that are already in a downtrend and have gapped down after a poor earnings report. This sets up a bearish "power earnings gap" for the potential rising wedge pattern to form.
1) The document discusses the bearish rising wedge pattern for shorting stocks. It provides examples of what the pattern looks like in charts and describes how price and volume behavior can indicate this pattern.
2) A key part of the pattern is a large volume sell-off followed by a weak, low volume bounce as the stock attempts to recover before rolling over again to the downside.
3) The document recommends looking for this pattern in stocks that are already in a downtrend and have gapped down after a poor earnings report. This sets up a bearish "power earnings gap" for the potential rising wedge pattern to form.
1) The document discusses the bearish rising wedge pattern for shorting stocks. It provides examples of what the pattern looks like in charts and describes how price and volume behavior can indicate this pattern.
2) A key part of the pattern is a large volume sell-off followed by a weak, low volume bounce as the stock attempts to recover before rolling over again to the downside.
3) The document recommends looking for this pattern in stocks that are already in a downtrend and have gapped down after a poor earnings report. This sets up a bearish "power earnings gap" for the potential rising wedge pattern to form.
관심종목으로 조정구간을 지켜보면서 본인이 좋아하는 10가지 패턴중 하나 로 그려지면 진입 Symmetrical Triangle Holy Grail Pattern Bearish
For Shorting Bearish Rising Wedge Pattern For Shorting1 Here are a few examples of Rising Wedge patterns and what they look like:
Notice the huge volume break down in
the share price for a few days marking institutional selling(aka Distribution!)... usually these high volume distribution phases start from a big catalyst such as a very poor earnings report(Bearish Power Earnings Gap) for example!
http://theimpatienttrader.blogspot.com/2019/09/bearish-rising-wedge-pattern-for.html?m=1 Bearish Rising Wedge Pattern For Shorting2
The price than attempts to rally back
or bounce on very low volume as the price actions looks and "feels" very anemic and uninspiring....
before price starts to roll over once
again to the downside! Bearish Rising Wedge Pattern For Shorting3 As many of you have seen lately, I've been sharing more and more RISING WEDGE setups in the AOT private twitter.
Rising Wedge patterns are bearish continuation patterns. They are
the exact opposite of Falling Wedges(which are bullish patterns)....
I especially like Rising Wedge patterns where the stock starts to bump into resistance areas such as key Moving Averages or Downtrend trendlines which act resistance ...
Rising Wedges looks like this:
This pattern works best in stocks that already in a down trend.... So
you're essentially looking for a low quality, meager, low volume bounce(where the stock simply bounces to relief oversold conditions, aka "Dead cat" bounce) before it resumes the previous trend, which is DOWN...
I especially like to use this pattern in tandem with a "BEARISH Power
Earnings Gap" : so a stock that gaps down and sells off after reporting poor earnings, the stock then makes a weak multi-day, low volume bounce that bumps and stalls into resistance... then look for the stock to roll over to downside again... Bearish Rising Wedge Pattern For Shorting4
For example, last week on the private twitter, i
shared this DDD short setup ....
Notice how DDD gapped down a few days ago
and sold off hard all day after reporting poor earnings...
The stock then made a weak multi-day bounce to
form a mini Rising Wedge pattern before rolling over with the Nasdaq late last week...
And then started to accelerate to downside....
Bearish Rising Wedge Pattern For Shorting5
DDD ended up being down about 6% to
8% on Friday ever since pointing out this setup....
This is the sort of pattern that's been
working in this weakening market lately... Bearish Rising Wedge Pattern For Shorting5 GS, did a similar Rising Wedge pattern last week as well ....
Since this market has been very
volatile lately, it's not a bad idea to reduce size but widen stop losses a bit to allow more room for stocks to wiggle around while they complete trading patterns...
You can enter a short position while the
stock is stalling resistance near the Rising Wedge's triangle apex or once it starts to actually roll over to the downside once you've identified a good looking Rising Wedge pattern.
Stop loss would go right above the
Rising Wedge pattern's most recent pivot highs.
I hope you found this post helpful!!
How To Trade a How To Trade a BREAKOUT AND RETEST Pattern 1
Perhaps some of you might've noticed that recently(this
is especially true in CHOPPY markets) that some times stocks that breakout will sometimes "fail"... that happens a lot, even in strong up-trending markets actually! When a stock breaks out on huge volume, often times the stock will keep on running and it would be very hard to catch that stock if you missed the initial entry and really want to get into this trade, you're left with TWO choices:
1: CHASE THE STOCK
or 2: WAIT FOR A Successful RE-TEST of the breakout
As you all know by now, I'm not a big fan of chasing a
breakout... I'd much rather remain sidelined and wait for a POTENTIAL retest of the breakout... exactly what we saw in BABA earlier this week. How To Trade a BREAKOUT AND RETEST Pattern 2
.....and here's how the stock did since that
emailed BABA setup broke out .... https://stockcharts.com/public/1510643
