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Falling Wedge
Falling Wedge
Formation :
1. Downtrend with Narrow Trading Range in the end of pattern.
2. Price will try to form a new low but with narrow trading range.
3. Both Support and Resistance lines slope Down.
4. Minimum 2 points of Support and 2 points of Resistance.
Points to Remember :
1. Short term formation so focus on 1-2 hour or 30 minutes time frame.
2. A narrow range at the end of pattern depicts a powerful reversal.
3. It’s a Kind of Triangle Pattern so target calculation from “C” point.
4. Make sure the Resistance line & Support line Is Slope down only upto
within -30 Degree.
Thumb rule time frame for Target : Half of the time frame of formation.
Like : If a pattern took 2 Months to form, then it will achieve tgt in the next
30-35 days that’s the minimum time frame for holding period.