What Is the Wedge Pattern and Its Common Characteristics?
1. Wedge patterns have converging trend lines that come to an apex with a distinguishable upside or downside slant.
a. Wedge with an upside slant is called a rising wedge
b. Wedge with downside slant is called falling wedge
2. It has declining volumes as the pattern progresses
3. It breaks out from one of...
Rising Wedge Pattern : - Rising wedge is a bearish pattern found in a downtrend. A rising wedge is formed when the price consolidates between upward sloping support and resistance lines.
Falling Wedge Pttern :- Falling wedge is a bullish pattern found uptrend. A falling wedge is formed when the price consolidates between downward sloping support and resistance lines.
In my previous analysis I talked about The falling channel Bitcoin was in. However when I took another look at it, it looked more like a falling wedge. This does not make any difference in the outcome of the price but this shows that TA can be subjective. But that is not what I wanted to talk about.
Falling wedges and channels are my favorite bullish trade...
Reversal or Continuation Pattern
Falling Wedge
Prices are moving downwards, forming lower highs and lower lows, but the price is confined within two lines which get closer together to create a pattern. This indicates a slowing of momentum and it usually precedes a reversal to the upside. This means that you can look for potential buying opportunities.
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