Chart Pattern Explained – Falling Wedge

🔍 Pattern Overview:

A falling wedge is a bullish reversal pattern formed by two converging downward‑sloping trendlines. It signals a potential uptrend when price breaks above the upper line.

📊 Key Characteristics:

Series of lower highs and lower lows within the wedge.

Volume generally dries up as the pattern matures.

A valid breakout occurs on a daily candle close above the upper trendline with increased volume.

🎯 Trade Setup:

Entry: On close above the upper trendline.

Stop‑Loss: Just below the most recent swing low inside the wedge.

Target 1: Height of the wedge projected upward from the breakout point.

Target 2: Next horizontal resistance zone.

📢 Caption Example:

> “Falling wedge breakout forming! Buy on close above the upper line with SL below the last low. Targets based on wedge height and next resistance—ready for the rally?”

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#ChartSchool #CryptoPatterns #FallingWedge #TradeSetup

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