Linear is forming a falling wedge pattern. Falling wedge patterns are characterized by a series of lower lows and lower highs that converge to form a wedge shape.
A falling wedge can signal either a reversal or a continuation of the price trend, with both scenarios occurring almost equally often.
Often, upward breakouts in falling wedge patterns indicate a reversal in the price trend, while downward breakouts favor a continuation of the trend.
To verify the validity of the pattern:
Steepness of the trendlines: We can observe that the upper trendline is steeper than the lower trendline.
The number of touches on the trendlines: To confirm the falling wedge pattern, at least five touches are required on both trendlines. And we can see that there are more than five touches on both the upper and lower trendlines.
A falling wedge can signal either a reversal or a continuation of the price trend, with both scenarios occurring almost equally often.
Often, upward breakouts in falling wedge patterns indicate a reversal in the price trend, while downward breakouts favor a continuation of the trend.
To verify the validity of the pattern:
Steepness of the trendlines: We can observe that the upper trendline is steeper than the lower trendline.
The number of touches on the trendlines: To confirm the falling wedge pattern, at least five touches are required on both trendlines. And we can see that there are more than five touches on both the upper and lower trendlines.
Trade closed: stop reached
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Test trading strategies on crypto, stocks, indices, forex with decades of 1-min data.