another one for those who prefer trading etf’s due to the relative safety found in their diversity of holdings. XLP would trigger a sell (short entry) on a break below the lower bottom trendline on this rising wedge.
remember, T= target(s) which are good support levels where i’d expect a reaction, possibly the final move if the trade is triggered. sometimes i will note the minor support levels with the letter “S”, which are potential support levels that we may or may not get a reaction off of as prices hit that level (on long trades, i will use “R” for resistance). although i wouldn’t plan on covering a short so early into the trade, like in the case of XLP here, i think that level is significant as once/if it is taken out, then the odds that the target(s) will be hit a greatly increase. therefore, often i will take a partial starter position on the initial breakdown (breakout) of the pattern and add to that position if/when the minor support (resistance) is taken out.
