Tron Fan Club| The Wedge Pattern and what it entails | By @solexybaba | 10%payout to the community account

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Hello to everyone in this great community known as the Tron Fan Club I welcome you to a great week and also to yet another interesting lesson that I have prepared today. previously we have been talking about cryptocurrency-related topics and I am so glad that many users are following, and with this massive turnout, I am now encouraged to do more. so today the title for today's lesson is called. the wedge pattern and what it entails. this is one vital topic that I have prepared for us today, as we get to look at the wedge pattern and all that it talks about in cryptocurrency trading. so sit comfortably and relax as I begin this lesson.

WHAT IS A WEDGE PATTERN?

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The wedge pattern is seen in a cryptocurrency market trading chat and is comprised of a particular structure which thus alerts cryptocurrency traders of the behavior of the market at a particular time, be it that the market remains in the previous movement or takes a new trend from how it was moving before and this new movement is seen when there is a breakout from the wedge that it was attached to. this behavior regarding the wedge pattern is liable to occur, it can not be stopped as though it takes both an uptrend, downtrend, and even sideways trend.

We should all be alert and take note that, we get to notice the wedge pattern when the market trading value continuedly to depict a lower price range, and with that, we then notice the wedge pattern.

Like I have said previously, the wedge pattern often depict the various type of wedge pattern and they are, the falling wedge and as well the rising wedge. and note that the shape given by the wedge pattern is just like the shape of an angle that depicts an upward movement alongside a downward movement. the price range waves that display in the wedge pattern are often suppressed and thus remain around a particular value for a while moving up and down and during that point, a break out from the wedge pattern is always expected. allow me to bring a clear picture for you all to see what a wedge pattern so looks like.

With the wedge pattern, one can simply know what is happening in the crypto trading market, and the wedge pattern is so easy to be identified on the trading market chart as easily as possible with just a glance, one can point out that this is indeed a wedge pattern. and also the wedge pattern can depict both a trend reversal or a trend continual of the crypto trading market value of a particular currency. this is either ending a previous trend by escaping from the wedge pattern where we notice a breakout and then depicts the new trend movement.

THE RISING WEDGE PATTERN

If you were paying attention, I made mention of the various types of wedge patterns, which I told us all are of two categories, the rising and falling wedge pattern. so now we will be looking at the rising wedge pattern.

The rising wedge pattern can be seen as the condition in which the chart depicts an uptrend movement whenever we noticed a ruse in the value of an asset in the crypto market trading. although the waves of the market may likely be restricted a bit and with that comes the affirmation where e notice that the wedge pattern constantly depicts a downtrend movement.

screenshot from tradingview.com

It occurs haphazardly in a specific trend movement, where we get to see that the price of an asset depicts a higher value and thus aims at heading in an upward direction, but then the limiting trend of the market still depicts that the upward movement power of acceleration is gradually coming down, thus since it does not break out then when such movement is noticed, we can now say that this is a rising wedge and then when e notice a breakout shortly after, the falling wedge is expected to be displayed.

The wedge pattern does have its uptrend and downtrend, so when the wedge is rising, we can then justify that action as an uptrend movement and thus indicate that the strength of the buyers in the market is well to do and with that manner, we can then planned as though there are tendencies that a huge deep is likely to be seen in the market. and with that, we can then notice that there is a high downtrend in price regarding the asset in question and it can be seen as it drops down the rising wedge pattern.

Note that, when we notice a rising wedge depicted in the downward movement, the value of an asset in the crypto market tends to depict an uptrend motion as though it will rise and with that, it is likely to pull back against the downtrend movement.

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How to point out a rising wedge pattern

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I will be highlighting some guidelines that enable us to point out a rising wedge pattern whenever we notice it on a crypto market trading chat, and here they are.

• The point at which the market pattern breakout is expected to be higher than or below average when compared to the structure of the wedge pattern.

• Again to be able to point out a rising wedge, the line of support is often normal when being compared to the line of resistance alongside depicts higher lows that are found in the rising wedge pattern.

• The uptrend information will then be more contract, and this will then occur to a reverse sequence depicting a falling motion.

• Normally, talking about a rising wedge, we are supposed to notice at least two upward lines that come together in an uptrend.

WHAT IS A FALLING WEDGE?

Just as I have explained what, a rising wedge is, I will be doing justice to this question also and this is for us to get a clear picture of what the two categories of the wedge pattern are all about.

screenshot from tradingview.com

The falling wedge is noticed at the point where we notice two falling lines come together in a falling market known as a downtrend market. and the lines that we are talking about go through at least not less than two lows and two highs and also move through both the support point and also the resistance point. also, the falling wedge pattern is generally seen as the bearish translation of the said pattern and this can easily be confirmed due to the downtrend structure that it depicts.

Note that, in this type of wedge pattern, the area of the movement line that depicts the highs is often lesser than the movement line that depicts the lows, this implies that the highs are excessively reducing when compared with that of the lows.

And in other, for us to be sure that a falling wedge is created, we need to see not more than five trend reversals which thus implies that two of these reversals are for a trend line and the rest are for the other remaining line.

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How to point out a falling wedge

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Just as, I have given some key points on how to identify the rising wedge pattern, I will also provide for us all certain key points to help us indicate or point out a falling wedge pattern, and these are seen below.

• In other to confirm that a falling wedge is seen, use the trend line that is provided in our chart to join/link the lower lows and also the lower highs.

• We also need to look closely at the chart to identify what kind of trend is displayed, either an uptrend structure is formed or a downtrend structure.

• We also are expected to look for a divergence between the price and an oscillator such as the stochastic indicator.

• We should all know that the falling wedge exhibit certain characteristics of a chart structure that is displayed when the price lower lows and also it lower highs of an asset in the market are getting in a smaller range. so when we notice that the structural pattern of the wedge is seen toward a falling point, at that point it is noticed to be a trend reversal wedge pattern, thus the exhibition of the range into smaller values or range signifies that the downtrend is losing energy.

CONLUSION

The wedge pattern is a market trading chat that assists traders to be alert to a particular trend that is about to be noticed in a short well, it is also seen when the price of an asset in the market exhibit a particular trend movement or take a trend reversal movement in price.

I also made mention that the wedge pattern has two categories and they are the rising wedge pattern and also the falling wedge pattern. and the rising wedge pattern occurs when there is an uptrend in the market price of a particular asset, and also the falling wedge pattern occurs when there is a fall or a downtrend in the price of an asset in the crypto trading market.

The wedge pattern is mostly used by scalp traders to make a specific entry and exit order from a market trend. also, the level of risk in this kind of trading using the wedge pattern is minimal as though when we noticed a breakout, it can easily point out the next market trend in assets.

Thank you all for going through my publication, I believe at this juncture, we all are now familiar with the wedge pattern and all it entails. see you in my next article. Greetings!.