Classic Falling Wedge Swing Trade in Corn Futures (ZC)

Discussion in 'Technical Analysis' started by CaseyB, Jul 10, 2019.

  1. CaseyB

    CaseyB

    Corn futures may not be among the most popular of instruments for short-term trading. But there are times when the less popular markets present the clearer trading opportunities. It’s a matter of thinking differently from the crowd and seeking opportunities in areas of the market that crowd-followers tend to underestimate.

    From May 28 to June 11, 2019, ZC exhibited a classic falling wedge pattern that most swing traders might have identified as a clear set-up.

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    If you are not familiar with the falling wedge, here’s a brief description. The falling wedge, generally considered a bullish pattern, is characterized by a narrowing downtrend. Price forms a downward-sloping “wedge”–its highs and lows moving lower appear to be converging toward a sharp point.