A rising wedge
The fluctuation range of the currency price is getting narrower and narrower. The high points, and low points of the currency price are respectively connected to form two straight lines that converge in the same direction. It is called a wedge because it is shaped like a wedge.
A rising wedge is when the currency price starts to rebound after a sharp drop, then falls back, and the low point is the previous high. It then rose to a new high, higher than the high of the last rally. This repeated, forming a wave of high wave trend. Connecting the rally high points and low points, you can draw two upward sloping lines, the upper one with a gentler angle and the lower one with a steeper angle. As shown below:
The technical characteristics of the rising wedge
(1). Usually occurs in a downtrend
(2). The high point of each rebound is higher than the previous high, and the low point is also higher than the previous low
(3). The overall transaction volume gradually shrinks
The technical meaning of the rising wedge
After the currency price fell below the lower line of the rising wedge, the market outlook was bearish and positions were cleared.
Disclaimer
This article is for reference only.
Such information provided by Gate.io does not constitute any investment advice and is not responsible for any of your investments.
Regarding technical analysis, market judgment, trading skills, trader sharing, etc., may involve potential risks, investment variables and uncertainties.
This article does not provide or imply any opportunity to guarantee profits.
