$EIGEN - Consolidation Falling Wedge
EIGEN - Consolidation Falling Wedge
Overview: The Consolidation Falling Wedge is a bullish technical chart pattern that often signals a potential reversal from a downtrend to an uptrend. When observed in the context of EIGEN, this pattern suggests that the crypto may be approaching a critical turning point after a period of consolidation.
Key Characteristics:
1. Trend Lines:
Descending Upper Trend Line: Connects the series of lower highs.
Descending Lower Trend Line: Connects the series of lower lows.
Both trend lines converge, narrowing the price range.
Implications for EIGEN:
Bullish Reversal Signal: The falling wedge suggests that the bearish momentum is weakening. As the price consolidates within the narrowing wedge, buyers may be gradually gaining control.
Potential Breakout: Traders watch for a breakout above the upper trend line with increased volume as a confirmation of the bullish reversal. This breakout can signal a good entry point for long positions.
Price Target: The anticipated move after the breakout is often projected by measuring the height of the wedge at its widest point and adding it to the breakout point.
Trading Strategy:
1. Entry Point: Consider entering a long position when the price breaks above the upper trend line of the falling wedge, accompanied by a surge in volume.
2. Stop-Loss: Place a stop-loss order below the lower trend line of the wedge to manage risk in case the breakout fails.
3. Profit Target: Set a profit target based on the measured move from the wedge’s widest point.
Overview: The Consolidation Falling Wedge is a bullish technical chart pattern that often signals a potential reversal from a downtrend to an uptrend. When observed in the context of EIGEN, this pattern suggests that the crypto may be approaching a critical turning point after a period of consolidation.
Key Characteristics:
1. Trend Lines:
Descending Upper Trend Line: Connects the series of lower highs.
Descending Lower Trend Line: Connects the series of lower lows.
Both trend lines converge, narrowing the price range.
Implications for EIGEN:
Bullish Reversal Signal: The falling wedge suggests that the bearish momentum is weakening. As the price consolidates within the narrowing wedge, buyers may be gradually gaining control.
Potential Breakout: Traders watch for a breakout above the upper trend line with increased volume as a confirmation of the bullish reversal. This breakout can signal a good entry point for long positions.
Price Target: The anticipated move after the breakout is often projected by measuring the height of the wedge at its widest point and adding it to the breakout point.
Trading Strategy:
1. Entry Point: Consider entering a long position when the price breaks above the upper trend line of the falling wedge, accompanied by a surge in volume.
2. Stop-Loss: Place a stop-loss order below the lower trend line of the wedge to manage risk in case the breakout fails.
3. Profit Target: Set a profit target based on the measured move from the wedge’s widest point.
Trade active
Went a little bit lower than what I draw, it was probably more a channel than a falling wedge. Still valid, still long on EIGEN. 
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.