How to trade with Falling wedge pattern-Live exampleFalling wedge pattern's considered as continuation pattern (Bullish continuation pattern) We can catch this pattern
after some bullish reversal or in a continuous bullish run.Best place to enter bullish was after the break of the upper side trend line
(After converging).The primary target would be the topmost rejection level of the wedge and we can fix our extended target with the help
of Fibonacci.
Falling Wedge
How to trade wedge patterns? An example based on EURUSD chartWedge Patterns are a type of chart pattern that is formed by converging two trend lines.
Wedge patterns can indicate both continuation of the trend as well as reversal.
Rising Wedge- On the left upper side of the chart, you can see a rising wedge.
Rising wedges usually form during an uptrend and it is denoted by the formation higher highs(HHs) and Higher Lows(HLs).
This pattern gives traders the opportunity to take short positions in the market.
When price breaks out of the lower Trend Line(TL) of the wedge, a trader can execute a short position.
Falling Wedge - On the left lower side of the chart, you can see a falling wedge.
Falling wedges when formed during a downtrend is a reversal pattern and it denoted by the formation of lower lows(LLs)
and lower highs(LHs).
If you notice this pattern during a downtrend, it usually indicates that the downtrend is losing momentum and buyers
are stepping into the market gradually.
When price breaks out of the upper TL, one can execute a buy trade.
On the right side, you can see the recent EUR/USD chart. The wedge pattern in this particular chart is the Broadening Wedge
Traders can trade this pattern by taking short positions whenever bearish price action takes place in the upper TL of the wedge.
On the other hand, buy trades can be executed on the lower trend line of the wedge.
Top Chart Patterns -- 20 Patterns Will Make You Pro Trader Hi All Trader's -- We Have Today New Education Lesson For ( Top Chart Patterns )
1- Symmetrical Triangle Pattern
2- Ascending Triangle Pattern
3- Inverse Head And Shoulders Pattern
4- Cup And Handle Pattern
5- Falling Wedge
6- Symmetrical Triangle Pattern ( Bearish )
7- Ascending Triangle Pattern ( Bearish )
8- Head And Shoulders
9- Inverse Cup And Handle
10- Rising Wedge
11- Rectangle
12- Flag
13- Pennant
14- Double Bottom
15- Triple Bottom
16- Rectangle ( Bearish )
17- Flag ( Bearish )
18- Pennant ( Bearish )
19 - Double Top
20- Triple Top
Thanks For Browsing My Lesson And Hope You Still Profit Always ♥
Description of the Wedge PatternsHi every one
The wedge pattern can be used as either a continuation or reversal pattern, depending on where it is found on a price chart. There are two types of wedge pattern: the rising (or ascending) wedge and the falling (or descending wedge).
1-Identifying the rising wedge pattern in an uptrend :
A rising wedge in an uptrend is considered a reversal pattern that occurs when the price is making higher highs and higher lows. As the chart Pattern number one shows, this is identified by a contracting range in prices. The price is confined within two lines which get closer together to create a pattern. This indicates a slowing of momentum and it usually precedes a reversal to the downside. This means that you can look for potential selling opportunities.
-Identifying the rising wedge pattern in an downtrend :
A rising wedge in a downtrend is a temporary price movement in the opposite direction (market retracement). As in the case of a rising wedge in a uptrend, it is characterised by shrinking prices that are confined within two lines coming together to form a pattern. It indicates the continuation of the downtrend and, again, this means that you can look for potential selling opportunities.
2-Falling wedge :
The falling (or descending) wedge can also be used as either a continuation or reversal pattern, depending on where it is found on a price chart. This lesson shows you how to identify the pattern and how you can use it to look for possible buying opportunities.
-Identifying the falling wedge pattern in a downtrend:
If the falling wedge appears in a downtrend, it is considered a reversal pattern. It occurs when the price is making lower highs and lower lows which form two contracting lines. The falling wedge usually precedes a reversal to the upside, and this means that you can look for potential buying opportunities.
-Identifying the falling wedge pattern in an uptrend:
A falling wedge found in an uptrend is considered a continuation pattern that occurs as the market contracts temporarily. It indicates the resumption of the uptrend. Again, this means that you can look for potential buying opportunities.
Traders, if you liked this idea or have your opinion on it, write in the comments, We will be glad.
Thank you for seeing idea .
Have a nice day and Good luck.
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Stacks 2.0 is coming at the same time as MainNet. Stakers will earn BTC while stacking STX after Stacks 2.0. You can confirm it from Blockstack's official announcements.
Now, let's look at the chart. I'm observing triple bottom formation. Also STX in oversold zone. Indicators which in oversold zone are Bollinger Bands %B , Relative Momentum Index, Relative Strength Index.
My discourses, my analysis and my drawings are definitely not investment recommendations. Cryptocurrency trading involves high market risk. Please take care of your transactions. My analysis is for educational purposes, I am not responsible for your losses.
How To Trade a Falling Wedge Chart Pattern - Educational PostIn the above example you can see a continuation chart pattern.
After a strong rally, price start to reverse and formed a falling wedge.
How to trade the falling wedge?
1. Wait for a breakout.
2. Enter at the retest of the breakout.
3. Set your stop-loss bellow the market structure.
4. Set your target at the higher high of the falling wedge.
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RISING AND FALLING WEDGES
Good afternoon.
Today we are looking at another chart pattern
RISING AND FALLING WEDGES .
Let’s get on it.
Wedges can either be continuation or reversal patterns.
Just to refresh your memory, continuation patterns are formations that show side way price action, signalling a temporary pause in the trend; whereas reversal patterns indicate a change in the trend.
Whether wedges are continuation or reversal, it’s not really significant, what matters is spotting the pattern, and knowing how to make money out of it.
Wedge patterns are classified as either RISING WEDGES OR FALLING WEDGES.
Rising wedges, as the name implies, slopes upwards, and they eventually break to the downside
Graphically, rising wedges look like the above sketch chart(Sketch 1)
notice how the slope of the support line is steeper than that of the resistance.
This indicates that higher lows are being formed faster than higher highs. That is precisely how the wedge pattern get to be formed.
The inverse of the rising wedge is the FALLING WEDGE , which usually breaks to the upside.(Sketch 2)
Just like on the rising wedge pattern, the falling trend line connecting the highs (resistance) is steeper than the trend line connecting the lows (support).
As mentioned earlier, rising and falling wedges can either be continuation or reversal patterns.
But whether they be continuation or reversal patterns is not our focus, our focus is on making money when these patterns ‘BREAKOUT’ .
If you case you are wondering what we mean by ‘breakout’; consider the chart above(Sketch 3) of a falling wedge and a rising wedge, and how they typically break to the upside and downside, respectively
Now let’s look at how we can make money out of a RISING WEDGE PATTERN.
Let’s start by considering the chart (Sketch 4)
Now, when entering a Short trade based on a rising wedge, it’s important to wait for a break and close below the support line.
After this close, aggressive traders can ‘pull the trigger’.
But a more conservative way to enter the trade, is to wait for a retest of the previous support (now resistance) before pulling the trigger.
In this case the sequence will be something like this:
1. Wait for a close below support
2. Wait for a retest of the previous support
3. If the previous support act as resistance, then enter short trade
A Long trade based on a falling wedge is entered on the same principle (but in reverse), that is,
1. Wait for a price close above resistance
2. Enter Long trade at that close (for aggressive traders)
3. For conservative traders, wait for a retest of the previous resistance (now support) before pulling the trigger
That’s ENTRY, now let’s look at placing stop loss and take profit levels when trading wedge patterns.
Take profit target should ideally be the height of the wedge formation.
Consider the chart above(Sketch 4)
Stop loss orders should always be placed at a level that if hit, it will invalidate the trading set up.
In the case of rising wedges, this level will be the area just above resistance.
The opposite is true for falling wedges, place stop loss just below support.
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Two Shapes of Falling Wedge PatternsIn the previous educational post, i posted about Rising Wedge patterns and in this post i have explained about Falling Wedge Patterns. (Falling Wedge is opposite of Rising Wedge pattern; for every chart patterns there are opposite patterns excluding some.)
Falling Wedges are Bullish Patterns and it generates bullish signal, Falling wedge patterns forms with Lower highs and Lower lows.
Falling Wedge pattern basically forms in two shapes same as Rising Wedge ; If Falling wedge pattern forms in an uptrend it will make continuation and if Falling wedge pattern forms in a downtrend it will make reversal.
The Lower highs and the lower lows along makes a trend resistance and trend support. When breakout occurs upside, price breaks the trend resistance line.
In Falling wedge breakout occurs upside 60 to 70% of the time.
To confirm a true breakout, we can take help of Volume and other indicators. In a true breakout there will be big volume than usual.
We should use other indicators like MACD and RSI also to confirm that it will turn bullish before taking entry in a trade. (We can see MACD convergence, RSI convergence)
Stay Tuned 👍 ;
Thank You;
Check out Rising Wedge if you didn't ()
Some wedge symmetryExample of wedge symmetry, rising wedge turned falling wedge on the ETCUSD pair. The falling wedge begins wide at the top and contracts as it proceeds, eventually tightening to a point where it 'explodes' which can be seen. The rising wedge is the same except beginning wide at the bottom and tightening as it proceeds upwards, eventually leading to bearish movement. Apologies for the top red line it is not symmetrical at all!
BNB doesn't deserve this levelHello fellas, welcome back to our podcast. This will be a very interesting podcast during this week! BNB is having my attention here. a lot of concern and update will be covered here. Let's do it.
Looking at the white trend line, it has been holding the price since August 2017 which means a 2 years trend line! And specifically, the price is coming very close to this trend line right now. Whenever I see the price moves like this and coming close to this trend line, I firmly believe that the price MUST respect this kind of trend line with a bounce.
My above statement is coming align with current pattern that I found on the market, we can easily deduce during the drop recently that the price is forming a bullish falling wedge which will always end up bullish. In my opinion, the APEX of the wedge is near and I believe that we will get the confirmation very soon to enter the long position.
Keep watching boy!
Falling and Rising WedgesOne of the first things to know about rising and falling wedge patterns, is that they’re a great indicator of an upcoming reversal. Much the same as other wedge patterns, they’re formed by a consolidation period representing either distribution or accumulation.
While both rising and falling wedges can form over a period of any length, typically the longer the consolidation period, the more explosive the breakout will be when it eventuates
A Falling Wedge is a chart pattern within the context of a downtrend composed of two downward sloping and converging trendlines connecting a series of lower swing/pivot highs and lower swing/pivot lows.
The power of a Falling Wedge can be greater after a moderate downside move due to the possible decrease of overhead resistance as the pattern is formed.
Falling Wedges can be stronger when the series of lower swing/pivot highs and lower swing/pivot lows that formed the pattern narrow down into a point/apex as bears become less interested in selling.
2)A Rising Wedge is a chart pattern within the context of an uptrend composed of two upward sloping and converging trendlines connecting a series of higher swing/pivot highs and higher swing/pivot lows.
The power of a Rising Wedge can be greater after a moderate upside move due to the possible decrease of underlying support as the pattern is formed.
Rising Wedges can be stronger when the series of higher swing highs and higher swing lows that formed the pattern narrow down into a point/apex as bulls become less interested in buying.
Lesson 6A - Breakout Patterns - Falling Wedge (Bullish)Welcome back to Lesson 6 traders. I have something interesting for y'all in this lesson. This lesson is going to be a series on Breakout Patterns. I will be posting one breakout pattern at a time, so it is easy to understand, and clean enough to follow. The following lessons are going to be posted in lesser time. So in the Lesson 6 series, since there will be multiple topics for breakout patterns, I will be splitting them into Lesson 6A, 6B, 6C and so on....
In Lesson 6A, we will be going over the Falling Wedge breakout pattern. We will be looking over the criteria to qualify for this pattern, and what to look for in order to get a breakout confirmation.
Falling Wedge is usually a bullish pattern most of the time. It usually is wide from the top and contracts as it moves down to the lower price levels.
There are certain criteria for a falling wedge to qualify to be a reversal or a breakout pattern. Lets follow the chart above in order to get a good understanding of what I am taking about here.
Actually I will post the above chart right here for you so it can be easier for you:
So in the chart above we can clearly see TWO falling wedges, they both are for the same breakout that happened in TRX, so you can refer to any of them. We will go over the step again as a summary, but let us first go over the detail so you get a clear view on this.
Whenever I am looking for a falling wedge patterns, I make sure the resistance line, which is the upper line of the falling wedge connects minimum of 3 candle sticks. Sometimes we can get away with 2 candle sticks, but when we have 3 connected candle sticks, meaning the price has pulled back after touching the resistance line at least 3 times, we can check off one of the criteria for a falling wedge.
Now for the support line, which is the lower line of the falling wedge should at least have a minimum of 2 candle sticks touching the line, meaning the price has bounce at least 2 times after touching the support (lower) line of the falling wedge. This is considered the second criteria for the falling wedge. This just means that you have a close to accurate enough data to consider this as a reversal pattern for the selected time frame you are into.
If we look closely at the chart, for the resistance line, the price has pulled back after touching it about 4 times, and 3 times for the blue support line. Notice how the price candles have not closed outside of the resistance or the support line. This is really important for a valid pattern. Since we have BTC movement effecting the altcoin prices, we can ignore the candles closing just a little outside the resistance/support lines, but mostly the price should be moving inside the wedge.
Another criteria for a falling wedge is that, it starts out wide, and the wedge contracts as seen in the chart, as the price moves lower.
Once we have these three criteria lined up, we have a confirmation that the price pattern is currently moving in a falling wedge. So now, all we need to do is wait for the breakout. Remember, this is very very important. In order to confirm this reversal, the price must breakout from the falling wedge to the upwards. If it breaks towards the bottom (support line), this pattern gets invalid.
As we see in the chart above, the candle breaks out of the falling wedge, and the price start moving rapidly upwards. Thus, we can say that the falling wedge on the chart above is a valid falling wedge pattern.
You must have understood this pattern by now. Make sure you do by reading what I have written above, and looking at the chart at the same time.
Continue reading below......
Every major chart pattern between 3/18 and 3/28!Chart patterns are great ways to anticipate reversals of trends. Other indicators like MACD and RSI can help you figure out more exactly when but identifying chart patterns are a great way to see a reversal coming. The first step is knowing how to draw trend lines. With these you can more easily see how the range of a certain move is changing. If the range is either tightening or widening, the likelihood is that a reversal is coming. Typically, volume will also steadily decrease throughout the pattern, ending in a climax in which the trend reverses. On the chart you can see several types of common chart patterns labeled, bearish in red and bullish in purple.
I always consult Thomas Bulkowski's guide on chart patterns if I am ever in doubt. His observations were for stocks but work really well for cyrptocurrency trading as well. Especially because patterns tend to form a lot more quickly than traditional securities.
Resources:
(1) Rising (ascending) wedge
(2) Bullish pennant
(3) Falling (descending) wedge
(4) Descending broadening wedge
Peace and love,
crypt0guy
Example of a Falling Wedge on EURUSDEURUSD formed a falling wedge, both lines are downtrend. The angle of descent is steeper on the resistance line. The pattern form highs lower than previous and lows lower as well. After a few attempts, the prices finally break through resistance.
To confirm the breakout, the price should close above the resistance line, if so, make a long. The profit target is the distance away as the back of the triangle.