The trader expects that the large “bear” will be able to complete the formation of the “broadening wedge” pattern. The aggressive strategy provides for sale opportunity in the area of points 2 and 4.
Its activation allows you to open a short position. If it is below support, as in the case of EUR/AUD, a pending order is placed at the minimum point of the bar. The conservative approach assumes that the trader should be waiting for the breakout bar to close. Trading strategy for the broadening wedge on the EUR/AUD chart
Up to this point, the emergence of an upthrust on increased volumes indicates that everything goes according to the plan. Now we should prepare for a breakthrough of support line near point 3. The inability of the bulls to restore the uptrend is the first sign of their weakness. Confirmation is the formation of point 4 of the “broadening wedge” pattern. If the movement is on the bar with a decent range in the framework of consolidation, it makes sense to assume the presence of a trace of a large "bear". The appearance of high-volume charts should draw the attention of any trader. And here the analysis of spreads and volumes comes to help us. If you can identify a loser, you can confidently open a position. Neither sellers nor buyers want to surrender. It includes two lines, 2-4 and 1-3, formed with the help of successively rising maxima and lowering minima. Within its framework, extremes are often drawn, which ultimately leads to the formation of the Expanding Wedge pattern. Trend reversals may occur very rapidly, though, as a rule, they are accompanied by consolidation, which in VSA is usually called distribution or accumulation of positions by large players. I call this approach the coyote method, and it works. The fighting between bulls and bears does not cease, and the ordinary trader needs to determine which of them dominates in order to take the side of the fittest. Its effectiveness is high, but if you add VSA-analysis elements to your trading method, the result will be even better. One of them is the “Expanding Wedge” pattern. The ability to read the market not only helps to survive in difficult situations but also to earn money with familiar patterns. Studying the features of Forex trading using VSA and the “Broadening Wedge” pattern
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