đ FALLING WEDGE PATTERN â THE BULLISH REVERSAL TRAP YOU SHOULD MASTER đ
The Falling Wedge isnât just another chart pattern â itâs a high-probability signal for trend reversal and bullish breakouts. If you spot it early, it could be your best entry in a volatile market.
đ What Is a Falling Wedge?
A falling wedge forms when two downward-sloping trend lines converge.
But here's the key:
đș Lower highs are dropping faster than lower lows â showing selling pressure is weakening.
âïž Key Characteristics:
âą Needs at least 5 touches (2 on one side, 3 on the other)
âą Volume often declines during formation
âą Tightening price range creates pressure for breakout
âą Typically forms after a panic drop or climax low
âą Breakouts are more powerful when volume spikes on breakout
đ Why It's Bullish:
While it appears bearish, itâs actually a trap for short sellers.
As bears get exhausted, bulls regain control, price rejects support, and a sharp breakout follows.
This often results in a powerful upward trend.
â Breakout confirmation = strong buy signal
đ Pro Tips for Trading It:
Watch for volume drop during pattern, spike on breakout
A gap before breakout = even better results
Ideal for catching reversals in downtrends or pullbacks in uptrends
đĄ Remember: The best trades come from recognizing market psychology.
The falling wedge is the classic example of momentum shifting before the chart tells the full story.
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