![]() When this happens, it’s certainly easier to identify the pattern and enter a position in the other direction with a stop-loss order. Typically, the falling wedge pattern comes at the end of a downtrend where the previous trend makes its final move. Nonetheless, regardless of the market condition, you always need to find the same pattern formation and follow the same rules when using this pattern to predict future price movements.īelow we are going to show you the two ways in which you can find the falling wedge pattern. Or, in other words, it may indicate a trend reversal or trend continuation. How to Trade Forex Using the Falling Wedge Pattern – Strategies and ExamplesĪs we previously discussed, the falling wedge pattern can be formed after a prolonged downtrend or during a trend. Set a stop-loss order at the same resistance trend line.Place a buying order once the falling wedge appears and the price break above the resistance trend line.Wait for a price consolidation and the contraction of support and resistance lines.Draw two trend lines – the bottom support line and upper resistance line. ![]()
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