Is a Falling Wedge Pattern for Bullish Signal?

Digiasset News Nov 01, 2022

The falling wedge pattern is a pattern that forms when the price bounces between two downward-sloping on trend lines. This pattern is often found at the end of an asset price downtrend. Then, if the price set breaks through the upward trend line, a reversal will occur and the asset price will move higher. So, this strategy is chance to traders start entering the market in buy position.

Check here to identify the falling wedge pattern on the asset price chart in the market. First, Identify a downtrend between lower highs and lower lows using the trend line. Then, the two lines will meet and slope downwards. And the last one, Look for a break above resistance line for a buy entry.

Let's check BNB/USDT market above, first, the price is dropping with some resistance on trendline. The the market spiked up and broken last trendline ( check on black arrow ). That's a point for a crypto trader/investor looking for a chance to get profit by this strategy. In some cases, traders often encounter false or inaccurate wedge patterns. So, need another analysis for this strategy more accurate, For example, while there was a demand area below falling wedge, traders just wait confirmation by broken trendline to looking for buy. This strategy works better if the trade is also taken in the direction of the overall market trend. Do your own research before trading.

Open a Crypto Trading Account Under 5 Minutes

Open a trading account for your crypto asset in Digiasset. Products traded include Bitcoin (BTC), Ethereum (ETH), Doge, Tether (USDT), Binance Coin (BNB), TRX, JUST and more assets another crypto that is in the top 500 on Coinmarketcap.