A falling wedge
The currency price began to adjust after the sharp rise, and then rebounded, but the rebound high was lower than the previous high. After that, it fell back, and the low was lower than the previous low. This repeated, forming a wave below the trend of a wave. By connecting the highs to the highs and the lows to the lows, you can draw two downward sloping lines, the lower one is gentler and the upper one is steeper. As shown below:
The technical characteristics of the falling wedge
(1). Usually occurs in an uptrend
(2). The high point of each rebound is lower than the previous high, and the low point is also lower than the previous low
(3). The overall transaction volume gradually shrinks
The technical meaning of the falling wedge
After breaking the upper line of the falling wedge, the market outlook is bullish and enters the market to buy.
Special reminders
(1). Most wedges themselves are mid-term corrections of long-term trends, or secondary waves of larger primary waves. Wedge consolidation time is generally not less than two weeks.
(2). If the rising wedge does not fall but rises and breaks upwards, it means that the trend has reversed. In this case, the rising wedge can be seen as a gradually narrowing ascending channel, or as a segment of different rising angles in an uptrend, a few of which are the bottom of a rounded bottom.
(3). If the falling wedge breaks down and does not rise but falls, it means that the trend has reversed. In this case, a descending wedge can be seen as a narrowing descending channel, or as a segment of a downtrend at different angles, and a few can be seen as the top of a dome.
(4). The falling wedge appears in the falling market, the technical meaning is the same as the rising wedge in the falling trend, most of them break down, and the market outlook continues to be bearish.
(5). Rising wedges that appear in an uptrend have the same technical meaning as falling wedges in an uptrend, most of them break up, and the market outlook is bullish.
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