Falling wedge formation (or triangle):
The upper boundary is the resistance line connecting the lower highs.
The lower boundary is the support line running along the local lows.
The wedge is narrowing - a classic sign of potential volatility compression before the exit.
Three touches of the lower boundary (orange circles):
This confirms the strength of the support level.
Repeated rebounds from the same level increase the probability of its upward breakout.
Possible scenario (yellow arrows):
Another upward rebound is expected within the wedge.
If there is a breakout of the upper boundary of the wedge with momentum - this is a confirmation of the bullish signal
Forecast:
Base scenario: wedge breakout upwards and growth.
Alternative risk: if the price breaks the support level downwards
(where there were 3 touches), this will be the invalidation of the pattern - a sharp collapse is possible.
The upper boundary is the resistance line connecting the lower highs.
The lower boundary is the support line running along the local lows.
The wedge is narrowing - a classic sign of potential volatility compression before the exit.
Three touches of the lower boundary (orange circles):
This confirms the strength of the support level.
Repeated rebounds from the same level increase the probability of its upward breakout.
Possible scenario (yellow arrows):
Another upward rebound is expected within the wedge.
If there is a breakout of the upper boundary of the wedge with momentum - this is a confirmation of the bullish signal
Forecast:
Base scenario: wedge breakout upwards and growth.
Alternative risk: if the price breaks the support level downwards
(where there were 3 touches), this will be the invalidation of the pattern - a sharp collapse is possible.
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.