📉 Descending and Ascending Wedge: Simply the Main Points
A wedge is a chart pattern where the price narrows between converging trend lines:
-Upper line — resistance
-Lower line — support
🔻 Descending Wedge (Falling Wedge)
-Lines are directed downwards
-Price is decreasing, but the fluctuations are narrowing
-Volumes are decreasing
📈 Signal: bullish — growth is possible
Often appears:
-After a decline — reversal signal
-In an uptrend — correction before continuation
🔺 Ascending Wedge (Rising Wedge)
-Lines are directed upwards
-Price is increasing, fluctuations are narrowing
-Volumes may be decreasing
📉 Signal: bearish — decline is possible
Often appears:
-In a decline — correction before a new decrease
-After an increase — reversal signal
💡 Tips:
Wait for a breakout confirmation
Consider the volumes
Use additional indicators (RSI, MACD, etc.)