How to trade FALLING WEDGE?
Trend: Bullish/Bearish
Type: Bilateral
Timeframe: From 1h
Entry point: After the price closes outside of the pattern
Shape: Two narrowing support and resistance lines between which the price moves
Differences from a triangle: The main difference from the triangle pattern - is the slope of the resistance and support lines
Touches: The minimum number of touches is 5, three on one line and two on the other
Line angle: The slope of the resistance line is steeper than the slope of the support line
Volume: Increase of the volumes in the breakout zone
Confirmation: The pattern is confirmed when the price closes outside one of the trendlines
Support/Resistance: After the price closes outside of the pattern, the support or resistance line may become a mirror level
Breakout chance:
70% - Upward/30% - Downward