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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