Archives for April 2021

Blog Posts For April/2021

Falling Wedge Patterns: How to Profit from Slowing Bearish Momentum

chart pattern
converging trend lines

It is generally considered a bearish signal, meaning the price is predicted to move downward. On Monday, Bitcoin posted a similar resistance breakout, with its volumes on a four-chart stabilizing alongside. The move upside signaled that the cryptocurrency could post extended gains in the sessions ahead, with levels above $50,000 looking like ideal primary upside targets for bulls. Crypto assets trading can be considered a high-risk activity, where crypto assets prices are volatile, and can swing wildly, from day to day. Please do your own research before making the decision to invest in, or to sell crypto assets.

Bitcoin Slumps To $20K, Ethereum, Dogecoin Shiver On Biden’s … – UK

Bitcoin Slumps To $20K, Ethereum, Dogecoin Shiver On Biden’s ….

Posted: Fri, 10 Mar 2023 08:00:00 GMT [source]

Volume typically reduces after a while, and this is when buyers, who have been holding cash or stablecoins, pounce on the asset with full buying power, hereby causing a reversal. It is usually seen as a change in sentiment in an oversold asset or a slight reduction of volume in a bullish market. Time interval selection.Patterns are identified over 4 time intervals .

What Is a Wedge and What Are Falling and Rising Wedge Patterns?

A bullish symmetrical triangle is an example of a continuation chart with an uptrend. Two symmetrical trend lines that are convergent make the pattern. The action preceding its development has to be bullish in order for it to be termed bullish. A cryptocurrency’s price changes by making swing lows and highs. Investors consequently see brief bearish fluctuations inside a broad bullish trend. A shift from a minor swing level, therefore, signals the continuance of the main trend.

However, some traders wait for 1-2 candles (1D, 1H…depending on time interval selected) to confirm the price path. Read this article in our knowledge base to understand the difference. That could be interpreted as a sign of weakness in the current market. Hence, there’s a possibility that this bullish wedge pattern may show weakness as well … Or that we’ll have to wait for volume to return before any bullish moves are made.

elon musk

CoinMarketCap is not responsible for the success or authenticity of any project, we aim to act as a neutral informational resource for end-users. A method in which investors put their money in two extremes of high-risk and no-risk assets while ignoring … Traders would have achieved the $11,500 price target had there been no global market sell-off. The price objective is then estimated by adding this rectangle to the wedge’s breakout point. Key level approach.The first type of trade opportunity is when the price has bounced off a key level and moved away, and is now yet again approaching that level.

form#sib_signup_form_3 p.sib-alert-message-warning

That is a reverse pattern, after which the price of an asset is likely to head in an opposite direction — upward, in this case. After a Rising Wedge, an asset has a high chance to begin declining. Rising and falling wedges are only a minor component of a transitional or main trend.

When traders successfully pin what could possibly be a wedge pattern and end up being right, they earn a lot. This is why wedge patterns are so essential to the art of trading cryptocurrency. Wedge patterns are frequently, but not always, trend reversal patterns. Because the trend lines that describe the falling wedge are descending, falling wedges are occasionally falsely thought of as continuation patterns for an overall downward trend.

Learning how to detect the wedge pattern on the chart and identify it correctly is important. This skill might significantly improve the overall trading returns. More than that, if you try to use rising wedge patterns and do it wrong, you will lose a lot of money. The mistakes are costly, so it’s better to understand this strategy correctly.

Crypto Signals Summary

A symmetrical triangle is a chart pattern characterized by two converging trendlines connecting a series of sequential peaks and troughs. When the price breaks the upper trend line, the security is expected to reverse and trend higher. Traders identifying bullish reversal signals would want to look for trades that benefit from the security’s rise in price. Some chart patterns have a higher success rate than others.


Two or more equal highs forming a horizontal line at the top; two or more rising troughs forming an ascending line that meets the horizontal line. Ideally, a price breakout is accompanied by an increase in volume. Hence, the increase in volume can confirm the validity of the price breakout.

Gaps before the falling wedge bitcoin are also said to improve the performance. It takes at least five reversals to form a good Falling Wedge pattern. Find the approximate amount of currency units to buy or sell so you can control your maximum risk per position.

How To Trade Crypto Using Falling Wedge Pattern

The upside breakout in price from the wedge, accompanied by the divergence on the stochastic, helped anticipate the rise in price that followed. Yuri is a crypto journalist interested in technology and technical innovations. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects.


Trade up today – join thousands of traders who choose a mobile-first broker. Each of these lines must have been touched at least twice to validate the pattern. We may receive financial compensation from these third parties. Notwithstanding any such relationship, no responsibility is accepted for the conduct of any third party nor the content or functionality of their websites or applications. A hyperlink to or positive reference to or review of a broker or exchange should not be understood to be an endorsement of that broker or exchange’s products or services. Bitcoin’s recovery takes cues from a recovery in US government bonds on Friday and Monday.

Other technical tools, such as oscillators, can confirm oversold signals. As with the Rising Wedge, this pattern also has a significant role in reading momentum and making profits. It is to be considered that, the whole narrative could experience an invalidation if the broader market continues to display weakness. The global cryptocurrency market capitalisation was at $1.93 Trillion with an increase of 2.2% over the last 24 hours. The pattern may not make sense to you if you are a beginner trader. Get daily trading ideas, educational videos and platform updates.

The current movement of Doge has managed to invalidate its recent rally. Finally, the profits from a falling wedge are potentially higher than the bull pattern. Another key difference is in the distance between lows and highs. There is an equal distance between the lows and highs in a bull flag pattern, while the falling wedge has a squeezing pattern. The falling wedge trading pattern offers a great chance for a good risk-reward ratio. Verify that you have established the trendlines according to your preferences .


Due to the confident mindset of the investors who anticipate the trend to persist, these reversals can be rather severe. The simplest approach to notice the narrowing of the channel, which is the initial significant clue that a reversal is brewing, is to use trend lines. In the above diagram, the indicator hovered at -37% which is considered to be a point for price reversal. This reading is in accordance with the overall long-term as well as short-term technical outlook for the coin. In the last 24 hours, Dogecoin barely displayed any price action. Bitcoin was seen trading above the $40,000 mark finally which displayed signs of strength, altcoins were yet to follow the same price action.

The two trend lines are drawn to connect the respective highs and lows of a price series over the course of 10 to 50 periods. The lines show that the highs and the lows are either rising or falling at differing rates, giving the appearance of a wedge as the lines approach a convergence. Wedge shaped trend lines are considered useful indicators of a potential reversal in price action by technical analysts.