You can also employ momentum oscillators or support levels as additional indicators. When entering trades in bearish markets, one might utilize a falling wedge pattern as an indication or confirmation tool. When these trend lines come together, they create a wedge, which is how it gets its name. By keeping an eye out for two trend lines that have been steadily building over time and are converging, it is simple to identify a falling or descending wedge pattern. A continuation and reversal pattern is a falling wedge chart pattern.As a result, depending on the point in a trend where it manifests itself, the falling wedge can look as both a reversal and a continuation bullish pattern. This is because a narrowing of the range in this situation means that the asset’s price correction is growing smaller, which means that there will be a strong rally. The falling wedge pattern is seen to be a bullish pattern if it comes with an upward shift in market momentum. This is because a declining range indicates that bearish sentiment toward an asset is waning. A falling wedge is seen as a reversal pattern when it shows up amid a downward shift in market momentum.
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