This is an intraday trade setup and can not be used for a longer term bias. Remember in trading the session Opening range breakout only trade currencies correlated to that session. Forex on the other hand watch for the open of the session to set a doble high, doble low and whait for the break. The types of opening ranges: Daily Or Session in forex open range - Assets traded on an exchange, Look for price to set an OR in the beginning of trade on that exchange. ![]() once price breaks out it becomes a trading opportunity and even more opening ranges can set a direction bias of the market. opening ranges are the same concept as any other type of range, your ether playing inside the range or waiting for a breakout. I personally need to see price test a level at least twice making a type of double top , double bottom forming the range. The market sets a high, a low and reviets those highs and lows but fails to break through creating the range. OPENING RANGES (PROVIDING A MARKET BIAS) A opening range is when the market opens at a particular time such as for the year, month, week and day or session in forex. (Can also Use Wedge Low) (5) Target Is the Distance Between The Mouth of the wedge Added To The Breakout. (4) Stop below the 50% retracement of breakout to bottom of wedge . (2) Wait for price to break and close Above previous high. Descending Wedge Bullish Reversal- (1) Wait for a clear Descending Wedge to form. (Can also Use Wedge High) (5) Target Is the Distance Between The Mouth of the wedge Added To The Breakout. (4) Stop above the 50% retracement of top of wedge to breakout. (2) Wait for price to break and close below previous low - swing low. Conventional Way To Terad The Wedge Reversal: -Ascending Wedge Bearish Reversal-(1) Wait for a clear Ascending Wedge to form. Target is the Distance Between The Mouth of the wedge Added To The Breakout. once price breaks the wedge and prior high or low confirming the reversol, I preferably always wait for a pullback to the breakout of a fib level trading this pattern. The pattern pushes into a new highs or lows but with momentum slowing forming the wedge pattern. The reversal wedge patterns are signs of a trend losing strength. a descending wedge in a downtrend is the reversal sign and in a up trend is a retracement. One can define the different by knowing that a rising wedge in a up trend is a sign of a reversal whereas a rising wedge in a downtrend is considered as a type of retracementand you want to be looking to trade back into the direction of the trend (see attachment) This is also the same for descending wedges . trend reversal Wedges are both trend reversal and continuation patterns. ![]() (High Of Wedge ) (5) Target is a 100% extension of the first impulse move. (2) Wait for price to break and close below previous low. PullBack-(1) Wait for a clear rising wedge to form. (High Of Wedge ) (4) Target is a 100% extension of the first impulse move. (2) Sell when price breaks the previous low. Conventional way to trade a Bearish Rising Wedge pattern: -Breakout-(1) Wait for a clear rising wedge to form. (Low of wedge ) (5) Target is a 100% extension of the first impulse move. (2) Wait for price to break and close above previous high. PullBack-(1) Wait for a clear falling wedge to form. (Low of wedge ) (4) Target is a 100% extension of the first impulse move. In any case ounce price breaks the wedge you could look for a 100% extension of the initial impulse move Conventional way to trade a bullish falling wedge pattern: -Breakout-(1) Wait for a clear falling wedge to form. In a up trend the wedge will fall calling it a falling wedge and in a down trend the wedge will rise calling it a rising wedge . the consolidation and retracement squeezes price together forming a wedge . The wedge start with an impulse move followed by consolidation and a retracement. The wedge pattern The wedge pattern is both a trend continuation and a reversal pattern, here I will only talk about trend continuation.
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