How to spot and use rising and falling wedge patterns in crypto! | Crypto

How to spot and use rising and falling wedge patterns in crypto!

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– The wedge pattern is a simple chart pattern where the resistance and support trend lines begin to converge, almost as if compressing a spring.
– A rising wedge pattern occurs when there are higher highs and higher lows. However, the support trend line tends to climb at a sharper angle than the resistance trend line. This results in a rising wedge pattern and usually indicates a possible reversal of an up-trend.
– A falling wedge pattern is signified by lower lows and lower highs. Therefore, it results in declining support and resistance trend lines. However, the resistance trend line falls sharply compared to the support trend line, resulting in a falling wedge pattern. It is generally considered a bullish pattern, indicating that the negative trend is weakening, and the upward trend could come around shortly.
– Wedge patterns usually require around 3 to 4 weeks to form. These patterns generally indicate a trend reversal and are, therefore, always a good signal for traders and investors.
– A rising wedge pattern is ideal for short sellers who wish to bet against a token. On the other hand, a falling wedge pattern is usually a good buy indicator, as prices could take off shortly.

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