A falling wedge is a technical analysis chart pattern used in financial markets,It's a reversal/continuation pattern that forms when a security's price is falling, indicating a potential trend reversal.
A falling wedge consists of two converging trend lines, with the upper trend line sloping downward and the lower trend line sloping upward. The pattern forms when the price action is contained within these two trend lines, creating a wedge shape.
Here are the key characteristics of a falling wedge:
1. *Bearish trend*: The security is in a downtrend, and the falling wedge forms as a continuation pattern.
2. *Converging trend lines*: The upper and lower trend lines converge, indicating a potential reversal.
3. *Downward slope*: The upper trend line slopes downward, while the lower trend line slopes upward.
4. *Price action*: The price action is contained within the wedge shape, with the security bouncing off the trend lines.
5. *Breakout*: A breakout occurs when the price closes above the upper trend line, indicating a potential trend reversal.
A falling wedge can be a reliable, but it's essential to consider other technical and fundamental analysis factors before making trading decisions.
In this situation price just break above the down trend line and also the candlestick closes above a resistance of 65,000 indicating a continuation of the bullish run. The bulls once again I control of the market.
Remember, technical analysis is not a guarantee of future price movements, and it's always important to do your own research and risk management.
A falling wedge consists of two converging trend lines, with the upper trend line sloping downward and the lower trend line sloping upward. The pattern forms when the price action is contained within these two trend lines, creating a wedge shape.
Here are the key characteristics of a falling wedge:
1. *Bearish trend*: The security is in a downtrend, and the falling wedge forms as a continuation pattern.
2. *Converging trend lines*: The upper and lower trend lines converge, indicating a potential reversal.
3. *Downward slope*: The upper trend line slopes downward, while the lower trend line slopes upward.
4. *Price action*: The price action is contained within the wedge shape, with the security bouncing off the trend lines.
5. *Breakout*: A breakout occurs when the price closes above the upper trend line, indicating a potential trend reversal.
A falling wedge can be a reliable
reversal patternIn this situation price just break above the down trend line and also the candlestick closes above a resistance of 65,000 indicating a continuation of the bullish run. The bulls once again I control of the market.
Remember, technical analysis is not a guarantee of future price movements, and it's always important to do your own research and risk management.
