A descending wedge is a bearish chart pattern that is formed by a downward sloping trendline connecting a series of lower highs and a second, downward sloping trendline connecting a series of higher lows. This pattern is considered a bullish reversal pattern, as it typically forms during a downtrend and signals a potential reversal to an uptrend. Traders will often watch for a break above the upper trendline as a sign of a potential reversal, and may use other technical indicators, such as volume or momentum, to confirm the pattern.
Expecting a 4hr bearish div to form so maybe we come back down and hit the bottom line a third time making this a solid pattern as for a chart structure to work we normally would like to see 3 or more touches to validate the support/resistance and then bounce from support and break resistance. If you entering when the resistance is broken like a breakout trader I genuinely believe this is to late as you should be catching this from the bottom; then when resistance turns to support you have a nice trade where you can put your S/L deep in the green. Should call this a Stop Win. Could potentially break this now and push higher so a mix feel about long and short think short term we will come back down but this pattern could easily break to the upside the same as the ascending triangle I posted y'day.
Expecting a 4hr bearish div to form so maybe we come back down and hit the bottom line a third time making this a solid pattern as for a chart structure to work we normally would like to see 3 or more touches to validate the support/resistance and then bounce from support and break resistance. If you entering when the resistance is broken like a breakout trader I genuinely believe this is to late as you should be catching this from the bottom; then when resistance turns to support you have a nice trade where you can put your S/L deep in the green. Should call this a Stop Win. Could potentially break this now and push higher so a mix feel about long and short think short term we will come back down but this pattern could easily break to the upside the same as the ascending triangle I posted y'day.