In Trading Strategy Examples: Quick Charts

Our broadening wedges are back; when they occur at the base or peak of a trend they can be a challenge to navigate (particularly at this stage, following a hit on 50%). I would like to see us take one more stab and run into the range above and show some topping or bottoming structures, ideally, though we are on the 3rd touch. We might be meandering for a while in this general vicinity, however, while the market builds positions and awaits the next catalyst. “Buffering highs” (multiple hits) aren't uncommon is these types of circumstances where everybody seems confused. Either way, some short term gap fills act as obvious targets to the downside.

-Immediate gap fill is at 2840.
-On a break, upside targets 2860 to the 127% extension.
-Downside still eyeing Jan low, shorts rule but lack of eagerness to add.
-Offers said to be stacked 2830-50, and again seen in the 2860-80 range, with an option ex at 2900.
-Bids today taken out, with the exception of (of course) those lower, specifically 10 ticks in front of down through the 1.2700 handle (61.8%) and in the 2640s, which seems a better place for a sell stop at this rate. 2625 strong offers mentioned as well.

Click to enlarge

Broadening Wedge Reverse Pennant EURUSD

Chart source: https://www.tradingview.com/u/nobrainertrades/#published-charts

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Showing 3 comments
  • Ted Cowan
    Reply

    Steve, thanks for all the great articles!
    Been reading up about the gap fills and it’s greatly clarified levels to look for, but am a bit unclear on one aspect.  1.2840 is clear gap fill on eurusd, but I’m not clear if it has already occurred when price reached 1.2823. How close does a price need to get to this gap fill zone before you say it has been filled-is it just the approximate vicinity, or does price have to get a few pips to the point where the price gapped?

    I know, Supply and Demand is not exact to the pip, but would appreciate your thoughts on the matter. Please keep up the great work,
    Bootsy

    • Steve W
      Reply

      Hi, rule of thumb is just to keep it simple. In this case yes you’re right, the number I have is also in that range (2837 to be exact). So in this case no, I wouldn’t consider this filled yet. Still some open exposure in that range, with intent to push price lower right at that number.

      • Ted Cowan
        Reply

        Thanks for replying Steve, ha I should have known-keep it simple!
        Please keep up the great work…

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