#Write2Earn #WriteToEarnWCT Ascending Wedge Pattern
The ascending wedge pattern forms when the price movement narrows between two converging lines of an upward trend, creating higher highs and higher lows.
The ascending wedge pattern can be either continuation or reversal, depending on the trend preceding its formation. The pattern indicates the likelihood of a trend reversal when it is preceded by an upward trend or a sharp upward price wave. However, when it is preceded by a downward trend or a sharp downward price wave, it indicates trend continuation.
The ascending wedge reversal pattern forms during an uptrend when the price creates higher highs and higher lows that converge, with price waves narrowing with each upward movement the price achieves. In other words, each new major price wave is smaller and weaker than the one preceding it.
For the pattern to be considered valid, the price must bounce off its lines at least five times, twice on one line and three times on the opposite line.
Entry:
There are two ways to enter a sell trade based on the ascending wedge reversal pattern:
The first method (immediately after the closing of the candle breaking below the lower line of the pattern):
We wait for the market price to close a complete candle below the lower line of the pattern (support).
We ensure that the break was not a false break of the line and that the price has not returned to test it again.
We enter a sell trade after the price breaks below the lower line.
The second method (after the price retests the lower line of the pattern):
We wait for the price to return to test the lower line of the pattern (support) after it has been broken.
We ensure that the price retest of the line did not result in a breakout again.
Approximate target: Measure the longest price distance between the pattern lines and project it from the break point.
