Hello traders 🐺 .
As you might know one of my favorite patterns for trade are wedges , because usually wedge formation in the chart for example bullish wedge which is the falling wedge shows us that the traders are feeling exhausted about the bearish trend and you can find this in the RSI , because usually in this cases we have a very clear bullish divergence in the RSI .
In the chart below you can see that the exact same thing , we have a bullish divergence in the RSI and also we have a falling wedge pattern which is a bullish pattern so we can say that the trend is changed to bullish from bearish , because AAVE break the falling wedge and also price started to create higher highs and higher lows .
Maybe you know that the price target of the falling wedge is the top of the wedge and in this case in my opinion the best area for taking profit is around the weekly resistance structure which is in alignment with the 0.382 Fibonacci level . but the last target of this pattern is around the 0.618 .
As you might know one of my favorite patterns for trade are wedges , because usually wedge formation in the chart for example bullish wedge which is the falling wedge shows us that the traders are feeling exhausted about the bearish trend and you can find this in the RSI , because usually in this cases we have a very clear bullish divergence in the RSI .
In the chart below you can see that the exact same thing , we have a bullish divergence in the RSI and also we have a falling wedge pattern which is a bullish pattern so we can say that the trend is changed to bullish from bearish , because AAVE break the falling wedge and also price started to create higher highs and higher lows .
Maybe you know that the price target of the falling wedge is the top of the wedge and in this case in my opinion the best area for taking profit is around the weekly resistance structure which is in alignment with the 0.382 Fibonacci level . but the last target of this pattern is around the 0.618 .
