๐ FALLING WEDGE PATTERN โ THE BULLISH REVERSAL TRAP YOU SHOULD MASTER ๐
The Falling Wedge isnโt just another chart pattern โ itโs a high-probability signal for trend reversal and bullish breakouts. If you spot it early, it could be your best entry in a volatile market.
๐ What Is a Falling Wedge?
A falling wedge forms when two downward-sloping trend lines converge.
But here's the key:
๐บ Lower highs are dropping faster than lower lows โ showing selling pressure is weakening.
โ๏ธ Key Characteristics:
โข Needs at least 5 touches (2 on one side, 3 on the other)
โข Volume often declines during formation
โข Tightening price range creates pressure for breakout
โข Typically forms after a panic drop or climax low
โข Breakouts are more powerful when volume spikes on breakout
๐ Why It's Bullish:
While it appears bearish, itโs actually a trap for short sellers.
As bears get exhausted, bulls regain control, price rejects support, and a sharp breakout follows.
This often results in a powerful upward trend.
โ Breakout confirmation = strong buy signal
๐ Pro Tips for Trading It:
Watch for volume drop during pattern, spike on breakout
A gap before breakout = even better results
Ideal for catching reversals in downtrends or pullbacks in uptrends
๐ก Remember: The best trades come from recognizing market psychology.
The falling wedge is the classic example of momentum shifting before the chart tells the full story.
โ
๐ Follow for more price action insights, pattern breakdowns, and crypto trade strategies!
#FALLINGWEDGES #chartpatterns #CryptoTA #bullishreversal