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Rising Wedge

What are Falling and Rising Wedge Patterns?What Is the Wedge Pattern and Its Common Characteristics? 1. Wedge patterns have converging trend lines that come to an apex with a distinguishable upside or downside slant. a. Wedge with an upside slant is called a rising wedge b. Wedge with downside slant is called falling wedge 2. It has declining volumes as the pattern progresses. 3. It breaks out from one of the trend lines. Why We Should Pay Attention to Wedge Patterns? Some studies suggest that a wedge pattern will breakout towards a reversal rather than a continuation more often than two-thirds of the time. Therefore as the rule of thumb, people generally treat a falling wedge as a bullish pattern and a rising wedge as a bearish pattern, especially a falling wedge would be a more reliable reversal indicator than a rising wedge. Since we know a wedge pattern has a higher probability to reverse and due to the fact that the price of wedge pattern converges to a smaller area, we can trade the reversal set up with a relatively close stop loss to its entry price, which provides us with a good trading opportunity with a decent Risk:Reward ratio. Examples of a Bullish Rising Wedge and Bearish Falling Wedge. Sadly, there is nothing that works 100% in trading. Not every rising or falling wedge will reverse as one might expect. Every trader must properly manage their risk by setting stop losses and not just trading based on price patterns. Below are two examples. Bullish Rising Wedge (ETHUSDT during 15/NOV/20 - 28/DEC/20) In the early stages of the epic 20-21 bull market, if traders blindly treat the rising wedge as a bearish signal and trade accordingly, they would pay a heavy price. Bearish Falling Wedge (LTCUSD during 14/AUG/18 - 14/NOV/18) On the contrary, in the late stage of the 2018 bear market, any trader who blindly trades the falling wedge to bet on a reversal would also learn a hard lesson. Comment down your thoughts on Ascending Triangle Pattern in the comment section. Disclaimer: This is just an educational post. Never trade just any pattern. And please do your research before making any trades. Happy Trading!
Education
by Coinlog
7
AVAXUSDT Rising Wedge shows Chance?/Trading StrategyBYBIT:AVAXUSDT - A rising wedge is building since 9/12 Although lots people told rising wedge is bearish flag, I think we could catch chance if made good use of it. - Apparently, the bottom of this wedge shows strong support before Also, price gained support gradually on Fib(0.382) and Fib(0.5), can note there are two lower shadow on Fib(0.5) Therefore, We could catch its vibration to earn consistently. Based on the downtrend line was broke out and price has stood firm on Fib(0.618)(Orange arrow) Trading Strategy as below. - For Short-term Profit Targets: a) 79.8~83-----Fib(1)~Top of rising wedge Stop losses: a) 65.31-----low from two characteristic lower shadow(Orange horizontal line)
Long
by EthanTW
2
BITCOIN DOMINANCE BREAKOUT???Hello folks, Welcome to this exclusive BTC dominance chart in 8 hours timeframe. First of all, thank you for following and supporting me on the Tradingview platform. It means a lot to me. Through this platform, I am being able to provide quality content and exclusive updates for you all. So keep supporting and show your love for the community. Now, let's get back to the chart. We all know that BTC dominance was under the falling wedge pattern since 31st July 2021. It is exactly 48 days & 8 hours and now finally we can see a breakout above the resistance level. Yes! A breakout of the falling wedge pattern clearly indicating a formation of a new rally, a rising wedge pattern. Wait! But how can you be so sure? it can be a fake-out as well! Yes, I agree with that. I may be wrong and this could be a fake-out or a trap but we can't simply ignore it. We need to pay close attention to the dominance and in this chart, we are going to do that. * The first thing we need to notice is the bouncing level, BTC.D bounced back from 40.43 level close to the same level where the last dominance bounced on 18th May 2021. * The second thing to observe will be the moving averages. In this chart, the blue line indicates the 21 MA and the yellow 50 MA. It is close enough to make a bullish crossover. * The third thing will be the breakout. Like I said this could be a fake-out as well but at least we can wait for the confirmation. If we are really entering the new rally towards the upside then we can expect BTC.D to reclaim the 50% level within no time. But if in any case, this analysis is invalided and the dominance falls then we may see it below the 40% level reaching the 39% or even lower levels. All we need to do is wait for the confirmation. The dominance must hold and close above the resistance level. That's all for the update. If you find this useful then do like and share. What's your thought on the BTC.D? Is it the end of the falling wedge? Is BTC.D going to form a rising wedge pattern? Do comment your ideas in the comment box.
CRYPTOCAP:BTC.DLong
by Dexter_The_Trader
8