FALLING WEDGE PATERN

16 Jun 2022

When the price of an asset moves in an overall bullish trend before correcting lower, it forms a falling wedge pattern. Two converging trend lines are drawn within this pullback. When the price action bursts through the upper trend line , or wedge's resistance, the consolidation phase finishes. In a clear uptrend, the most typical falling wedge formation occurs. The price movement continues to rise, but the buyers lose pace at one point, allowing the bears to temporarily seize control of the market action. The falling wedge pattern is a technical pattern that indicates the end of the consolidation phase, allowing for a lower pullback. Falling wedges , as previously stated, can be both a reversal and a continuation pattern. Both continuation and reversal scenarios are bullish by definition. We focus on the essential parts of a trade: entry : 41.12 , stop loss : 40.81, and take profit : 44.32, as well as the overall risk connected with this trading opportunity, once we find a falling wedge that meets all criteria.