#EDUCATION LAB Falling Wedge Pattern A falling wedge patte | Crypto Bull Crypto Experts

#EDUCATION LAB

Falling Wedge Pattern

A falling wedge pattern is a technical analysis chart pattern that occurs in a downtrend and is characterized by a converging price range with lower lows and lower highs.

The pattern is created by two downward sloping trend lines that are moving closer together, forming a "wedge" shape.

The falling wedge pattern is considered a bullish reversal pattern, as the trend lines are moving closer together, indicating that the selling pressure is diminishing and a potential trend reversal may occur.

When the price breaks out above the upper trend line, it is considered a confirmed falling wedge pattern and signals a potential for the price to continue to rise.

However, it's important to keep in mind that chart patterns are not a guarantee of future price movements and should be confirmed with other technical indicators, such as volume or momentum indicators.
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