3/19/2024 0 Comments Ascending wedge measured move![]() ![]() ![]() The falling wedge usually precedes a reversal to the upside. ![]() It exists when the price is making lower highs and lower lows which form two contracting lines. If the falling wedge shows up in a downtrend, it is seen as a reversal pattern. A falling wedge is a continuation pattern if it appears in an uptrend and is a reversal pattern when it appears in a downtrend. The differentiating factor that separates the continuation and reversal pattern is the direction of the trend when the falling wedge appears. Both scenarios contain different market conditions that must be taken into consideration. The falling wedge pattern is seen as both a bullish continuation and bullish reversal pattern which gives rise to some confusion in the identification of the pattern. How to identify the Falling Wedge pattern? This is an indication that bullish opinion is either forming or reforming. But in this case, it’s important to note that the downward moves are getting shorter and shorter. They push traders to consider a falling market as a sign of a coming bullish move.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |