The Falling Wedge pattern is a bullish reversal formation that typically appears after a downtrend and signals the possibility of an upward breakout. Traders look for a breakout above the upper trendline, with increased volume as confirmation. The pattern is characterized by converging trendlines, a decreasing rate of decline, and a potential for significant price movement once the breakout occurs.
It’s a valuable chart pattern for traders looking for reversal opportunities, but it is important to combine it with other technical indicators to increase the probability of success.
It’s a valuable chart pattern for traders looking for reversal opportunities, but it is important to combine it with other technical indicators to increase the probability of success.
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