๐ Chart Pattern Lesson 8: Falling Wedge ๐
A powerful bullish reversal or continuation pattern often spotted in coins like $ADA, $MATIC, and $LTC when the market prepares to bounce back! ๐
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๐ What Is It?
The Falling Wedge forms when price makes lower highs and lower lows but inside two converging downward trendlines.
It shows sellers are losing momentum and buyers might soon take control.
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๐ Key Features:
Shape: Two converging downward trendlines
Volume: Typically decreases as wedge tightens
Breakout Direction: Usually up
Appears In: Both downtrends (reversal) and uptrends (continuation)
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๐ฏ How Traders Use It:
Entry: On breakout above the upper trendline
Stop Loss: Below the last swing low inside the wedge
Target: Height of the wedge added above the breakout point ๐ฏ
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โ Quick Tips:
Falling wedge on coins like $ADA can signal strong bullish reversals
Volume spike on breakout confirms strength
Watch for retests of breakout for safer entries
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๐ Summary:
The Falling Wedge tells us selling pressure is fading, and a bullish move is likely coming soon.
Keep an eye on $MATIC, $LTC, and others for this setup! ๐ฅ
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