Posted by foody518 on 18th of Apr 2024 at 10:28 pm
Hi Matt, I wanted to ask your thoughts regarding the 5 wave
rising wedge pattern that you mentioned in recent newsletters
regarding IWM/Russell 2000. I was looking at DRI weekly, in a
rising wedge, slight RSI and MACD divergence on the higher high.
Does this look like a similar pattern in the making? Does there
need to be one more touch to confirm the support trendline?
yes proper wedge patterns have 5 waves, whether they are falling
wedges or rising wedges, abcde. Also, an important note, a
completed or near completed wedge will always have MACD divergence,
if you draw a wedge that looks okay but there is no MACD
divergence, then changes are the wedge is not complete and it's
still some sort of 3 wave
DRI, not the greatest wedge, but sort of has that look and yes
you can count 5 waves with MACD divergence at those highs, that
high would be wave e if it's a wedge
the IWM chart is simply textbook they don't often look that
picture perfect
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Hi Matt, I wanted to
Posted by foody518 on 18th of Apr 2024 at 10:28 pm
Hi Matt, I wanted to ask your thoughts regarding the 5 wave rising wedge pattern that you mentioned in recent newsletters regarding IWM/Russell 2000. I was looking at DRI weekly, in a rising wedge, slight RSI and MACD divergence on the higher high. Does this look like a similar pattern in the making? Does there need to be one more touch to confirm the support trendline?
yes proper wedge patterns have
Posted by matt on 18th of Apr 2024 at 10:46 pm
yes proper wedge patterns have 5 waves, whether they are falling wedges or rising wedges, abcde. Also, an important note, a completed or near completed wedge will always have MACD divergence, if you draw a wedge that looks okay but there is no MACD divergence, then changes are the wedge is not complete and it's still some sort of 3 wave
DRI, not the greatest wedge, but sort of has that look and yes you can count 5 waves with MACD divergence at those highs, that high would be wave e if it's a wedge
the IWM chart is simply textbook they don't often look that picture perfect