Falling Wedge Trading Pattern: Unique Features and Trading RulesFalling Wedge Trading Pattern: Unique Features and Trading Rules
Various chart patterns give an indication of possible market direction. A falling wedge is one such formation that indicates a possible bullish reversal. This FXOpen article will help you understand whether the falling wedge pattern is bullish or bearish, what its formation signifies about the market direction, and how it can be used to spot trading opportunities.
What Is a Falling Wedge Pattern?
Also known as the descending wedge, the falling wedge technical analysis chart pattern is a bullish formation that typically occurs in the downtrend and signals a trend reversal. It forms when an asset's price drops, but the range of price movements starts to get narrower. As the formation contracts towards the end, the buyers completely absorb the selling pressure and consolidate their energy before beginning to push the market higher. A falling wedge pattern means the end of a market correction and an upside reversal.
How Can You Spot a Falling Wedge on a Price Chart?
This pattern is usually spotted in a downtrend, which would indicate a possible bullish reversal. However, it may appear in an uptrend and signal a trend continuation after a market correction. Either way, the falling wedge provides bullish signals. The descending formation generally has the following features.
- Price Action. The price trades lower, forming lower highs and lower lows.
- Trendlines. Traders draw two trendlines. One connects the lower highs, and the other connects the lower lows. Finally, they intersect towards a convergence point. Each line should connect at least two points. However, the greater the number, the higher the chance of the market reversal.
- Contraction. The contraction in the price range signals decreasing volatility in the market. As the formation matures, new lows contract as the selling pressure decreases. Thus, the lower trendline acts as support, and the price consolidating within the narrowing range creates a coiled spring effect, finally leading to a sharp move on the upside. The price breaks through the upper trendline resistance, indicating that sellers are losing control and buyers are gaining momentum, resulting in an upward move.
- Volume. The trading volume ideally decreases as the pattern forms, and the buying volume increases with the breakout above the upper trendline, reflecting a shift in momentum towards the buyers.
Falling and Rising Wedge: Differences
There are two types of wedge formation – rising (ascending) and falling (descending).
An ascending wedge occurs when the highs and lows rise, while a descending wedge pattern has lower highs and lows. In an ascending formation, the slope of the lows is steeper and converges with the upper trendline at some point, while in a descending formation, the slope of the highs is steeper and converges with the support trendline at some point.
Usually, a rising wedge indicates that sellers are taking control, resulting in a downside breakdown. Conversely, a descending wedge pattern indicates that buyers are gaining momentum after consolidation, generally resulting in an upside breakout.
The Falling Wedge: Trading Rules
Trading the falling wedge involves waiting for the price to break above the upper line, typically considered a bullish reversal. The pattern’s conformity increases when it is combined with other technical indicators.
- Entry
According to theory, the ideal entry point is after the price has broken above the wedge’s upper boundary, indicating a potential upside reversal. Furthermore, this descending wedge breakout should be accompanied by an increase in trading volume to confirm the validity of the signal.
The price may retest the resistance level before continuing its upward movement, providing another opportunity to enter a long position. However, the entry point should be based on the traders' risk management plan and trading strategy.
- Take Profit
It is essential to determine an appropriate target level. Traders typically set a profit target by measuring the height of the widest part of the formation and adding it to the breakout point. Another approach some traders use is to look for significant resistance levels above the breakout point, such as previous swing highs.
- Stop Loss
Traders typically place their stop-loss orders just below the lower boundary of the wedge. Also, the stop-loss level can be based on technical or psychological support levels, such as previous swing lows. In addition, the stop-loss level should be set according to the trader's risk tolerance and overall trading strategy.
Trading Example
In the chart above, there is a falling wedge. A trader opened a buy position on the close of the breakout candlestick. A stop loss was placed below the wedge’s lower boundary, while the take-profit target was equal to the pattern’s widest part.
Falling Wedge and Other Patterns
Here are chart patterns that can be confused with a falling wedge.
Falling Wedge vs Bullish Flag
These are two distinct chart formations used to identify potential buying opportunities in the market, but there are some differences between the two.
A descending wedge is a bullish setup, forming in a downtrend. It is characterised by two converging trendlines that slope downward, signalling decreasing selling pressure. A breakout above the upper trendline suggests a bullish move.
A bullish flag appears after a strong upward movement and forms a rectangular shape with parallel trendlines that slope slightly downward or move sideways. This formation represents a brief consolidation before the market resumes its upward trajectory.
While the falling wedge indicates a potential shift in a downtrend, the bullish flag suggests a continuation of an uptrend.
Falling Wedge vs Bearish Pennant
The falling wedge features two converging trendlines that slope downward, indicating decreasing selling pressure and often signalling a bullish reversal when the price breaks above the upper trendline.
Conversely, the bearish pennant forms after a significant downward movement and is characterised by converging trendlines that create a small symmetrical triangle. This pattern represents a consolidation phase before the market continues its downward trend upon breaking below the lower trendline.
While the falling wedge suggests a potential bullish move, the bearish pennant indicates a continuation of the bearish trend.
Falling Wedge vs Descending Triangle
The falling wedge consists of two downward-sloping converging trendlines, indicating decreasing selling pressure and often signalling a bullish reversal when the price breaks above the upper trendline. In contrast, the descending triangle features a flat lower trendline and a downward-sloping upper trendline, suggesting a buildup of selling pressure and typically signalling a bearish continuation when the price breaks below the flat lower trendline.
While the falling wedge is associated with a potential bullish move, the descending triangle generally indicates a bearish trend.
Falling Wedge: Advantages and Limitations
Like any technical pattern, the falling wedge has both limitations and advantages.
Advantages
- High Probability of a Reversal. The falling wedge is often seen as a strong, bullish signal, especially when it occurs after a downtrend. It suggests that selling pressure is subsiding, and a reversal to the upside may be imminent.
- Clear Entry and Exit Points. The pattern provides clear points for entering and exiting trades. Traders often enter when the price breaks out above the upper trendline and set stop-loss orders below a recent low within the formation.
- Versatility. The wedge can be used in various market conditions. It is effective in both continuation and reversal scenarios, though it is more commonly associated with bullish reversals.
- Widely Recognised. Since the falling wedge is a well-known formation, it is often self-fulfilling to some extent, as many traders recognise and act on it, further driving the market.
Limitations
- False Breakouts. Like many chart patterns, the falling wedge is prone to false breakouts. Prices may briefly move above the resistance line but then fall back below, trapping traders.
- Dependence on Market Context. The effectiveness of the falling wedge can vary depending on broader market conditions. In a strong downtrend, it might fail to result in a significant reversal.
- Requires Confirmation. The wedge should be confirmed with other technical indicators or analysis tools, such as volumes or moving averages, to increase the likelihood of an effective trade. Relying solely on the falling wedge can be risky.
- Limited Use in Low-Volatility Markets. In markets with low volatility, the falling wedge may not be as reliable, as price movements might not be strong enough to confirm the falling wedge's breakout.
The Bottom Line
The falling wedge is a powerful chart pattern that can offer valuable insights into potential trend reversals or continuations, depending on its context within the broader market. By understanding and effectively utilising the falling wedge in your strategy, you can enhance your ability to identify many trading opportunities. As with all trading tools, combining it with a comprehensive trading plan and proper risk management is crucial.
FAQ
Is a Falling Wedge Bullish?
Yes, the falling wedge is a bullish continuation pattern in an uptrend, and it acts as a bullish reversal formation in a bearish market.
What Does a Falling Wedge Pattern Indicate?
It indicates that the buyers are absorbing the selling pressure, which is reflected in the narrower price range and finally results in an upside breakout.
What Is the Falling Wedge Pattern Rule?
The falling wedge is a technical analysis formation that occurs when the price forms lower highs and lower lows within converging trendlines, sloping downward. Its rule is that a breakout above the upper trendline signals a potential reversal to the upside, often indicating the end of a downtrend or the continuation of a strong uptrend.
How to Trade Descending Wedge Patterns?
To trade descending wedges, traders first identify them by ensuring that the price is making lower highs and lows within converging trendlines. Then, they wait for the price to break out above the upper trendline, ideally accompanied by increased trading volume, which confirms the breakout. After the breakout, a common approach is to enter a long position, aiming to take advantage of the anticipated upward movement.
What Is the Target of the Descending Wedge Pattern?
The target for a descending wedge is typically set by measuring the maximum width of the wedge at its widest part and projecting that distance upwards from the breakout point. This projection gives a potential price target.
What Is the Entry Point for a Falling Wedge?
The entry point for a falling wedge is ideally just after the breakout above the upper trendline. Some traders prefer to wait for a retest of the broken trendline, which may act as a new support level, before entering a trade to confirm the breakout.
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Falling_wedge
Falling Wedge- BullishAfter finally retracing, the lithium sector is starting to look ready to breakout with buyers starting to step in. Watching LAC & PLL closely here as both are holding massive falling wedges, however, PLL is seemingly forming an ascending triangle as well on its weekly timeframe (See Attached Chart Below). Additionally, PLL is holding the same falling wedge on the 4-Hour timeframe with its Bollinger bands squeezing, along with a Bullish Butterfly Harmonic Pattern, MACD golden cross. Bullish and will be looking for a breakout from this wedge (Broader Market Conditions Permitting)- Just some support and resistance levels to keep an eye on along with some RSI-based supply and demand zones in the meantime -- Price Targets & Previous Charts Attached In Description --
PT1- $56.12
PT2- $58.74
PT3- $60.07
PT4- $61.26+
--Weekly Timeframe--
--4-Hour Timeframe--
PLL - Inverse Head and Shoulders - WeeklyWatching LAC & PLL closely here as the lithium sector heads into earnings. PLL is seemingly holding the same channel after breaking out and retracing back to the channel it's currently holding. PLL is holding the same channel on the 4-Hour timeframe with its Bollinger bands squeezing, along with a Bullish Butterfly Harmonic Pattern, MACD golden cross. Bullish and and anticipating an upward move following their respective earnings reports. (Broader Market Conditions Permitting)- Just some support and resistance levels to keep an eye on along with some RSI-based supply and demand zones in the meantime -- Price Targets & Previous Charts Attached In Description --
PT1- $56.12
PT2- $58.74
PT3- $60.07
PT4- $61.26+
--Previously Charted--
Massive Falling Wedge Headed Into EarningsAlways keep an eye on LAC, however, I've never seen it hold within a falling wedge for as long as it has, while heading into earnings. LAC is still holding the same massive falling wedge on the daily and weekly timeframes. LAC has a nice double bottom and MACD golden cross on the daily timeframe, accompanied by a bullish cypher harmonic pattern. Bullish and will be looking for a breakout from this wedge (Broader Market Conditions Permitting)- Just some support and resistance levels to keep an eye on along with some RSI-based supply and demand zones in the meantime -- Price Targets & Previous Charts Attached In Description --
PT1- $20.81
PT2- $21.67
PT3- $22.54
PT4- $23.78
--Weekly Timeframe--
-- Previously Charted--
Falling Wedge Heading Into EarningsPosting a quick update here as CRWD has been holding a macro-downtrend for some time now, and is heading into earnings looking quite bullish. CRWD is holding a massive falling wedge on its daily & weekly timeframes, (See Attached Charts Below), is sitting right on its 50-day EMA with the others starting to curl upwards, Bollinger bands are squeezing (Not Pictured), along with holding a bullish ABCD Elliot Wave on the daily timeframe and some gaps way on the upside still left to be filled. Additionally, CRWD is holding the same falling wedge on the weekly timeframe, accompanied by a massive bullish harmonic pattern as well as some bullish hidden divergence on the RSI. Will be looking for a breakout from this wedge (Broader Markets Permitting) - Just some support and resistance levels along with some RSI-based supply and demand zones to keep an eye on in the meantime - Bullish and looking for a breakout from this wedge
-- Price Targets & Charts Attached Below--
PT1- $129.71
PT2- $134.26
PT3- $141.71
PT4- $147.90+
--Weekly Timeframe--
NZDJPY - Bullish Falling Wedge 📈
As We Talked in The Previous Analysis:
On The Weekly Time Frame The NZDJPY Price Reached a Major Key Level !
Currently, The Price formed a Falling Wedge Pattern 📈
The Resistance Line is Broken
So, I Expect a Bullish Move 📈
i'm Waiting for a Retest...
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TARGET: 83.630🎯
________
if you agreed with this IDEA, please leave a LIKE, FOLLOW or COMMENT!
Falling Wedge- Bullish - UpdateENPH has been trading sideways for quite some time now while simultaneously getting beaten down by the broader markets, and testing a very strong resistance level circa $223-214.00. However, ENPH has seemingly found a bottom with a significant amount of bullish flow coming in while heading into earnings on 4/23'. From a fundamental standpoint, relative to others in the sector such as FSLR, ENPH is undervalued compared to other big names in the sector. Nevertheless, ENPH is setting up quite nicely here, hovering in and out of oversold territory while holding a massive falling wedge, accompanied by hidden bullish divergence on the RSI on the weekly timeframe (See Attached Chart Below). Furthermore, ENPH is sitting right on its 50-day SMA while bulls & bears are pulling. Regardless, Bullish and will be looking for a breakout from this wedge (Broader Market Conditions Permitting)- Just some support and resistance levels to watch along with some RSI-based supply and demand zones to keep an eye on in the meantime --Previous Charts Attached Below As Well As Price Targets--
PT1- $222.58
PT2- $228.34
PT3- $234.62
PT4- $240.37 +
Weekly Timeframe
Fundamentals
Previously Charted
Bitcoin at Falling Wedge Pattern As per #Bitcoin 1 Day #TA
Bitcoin weekly chart Still moving under #Bearish #Descending Triangle Pattern, while as per 1 Day analysis, from last 25 days moves under Falling Wedge Pattern, its last cut-off point is $21k on 11-12 March, after that some chances to be Retest again for $25k, but maximum chances to break next Divergence of $19.5k-$18.5k.
March to June is #Bearish struggling zones for BTC
SQ - Update - Potential ReversalSQ has been holding a downtrend for quite some time now; with buyers stepping in heading into earnings, we could see a nice bullish reversal coming and a breakout of the downtrend. Square's holding a massive falling wedge on the weekly timeframe, accompanied by some bullish hidden divergence on the RSI, Bollinger bands squeezing, and a huge bullish cypher harmonic pattern. Additionally, an inverse head and shoulders has formed on the 4-Hour timeframe (See Attached Charts Below). Similarly, on the daily timeframe, SQ is within a symmetrical triangle with some bullish hidden divergence on the RSI and a bullish Gartley harmonic pattern. Bullish and will be watching closely for a breakout from this wedge and triangle as buyers continue to step in (broader market conditions & earnings permitting)- Just some support and resistance levels along with some RSI-based supply and demand zones to keep an eye on in the meantime. **See Below for Price Targets, Weekly Timeframe, and Previous Charts**
PT1- $73.87
PT2- $78.82
PT3- $81.03
PT4- $86.76+
--Weekly Timeframe--
- Falling Wedge
- Bullish Harmonic Formed on the Daily & Weekly Timeframes
- Bollinger Bands Squeezing
--4-Hour Timeframe--
- Inverse Head and Shoulders
- Bullish Hidden Divergence on the RSI
Falling Wedge - Earnings Play AMZN has been holding a massive falling wedge for quite some time, and with buyers finally starting to step in as AMZN approaches earnings, definitely will be keeping a close eye on this one. Bollinger bands are squeezing (Not Pictured), Bullish ABCD Elliot Wave, some bullish hidden divergence on the RSI, and a double bottom all pointing to a breakout. However, a bit wary to enter given Powell will be live at 2:30 today. Bullish and will be looking for a breakout from this wedge (Broader Market Conditions Permitting)- Just some FIB levels to watch along with some RSI-based supply and demand zones to keep an eye on in the meantime
--See Attached PT's & Previous Charts Below--
PT1- $103.17
PT2- $105.34
PT4- $107.11
PT4- $109.56 +
--Previously Charted--
LAC - Update - BreakoutHave had my eye on LAC and the lithium sector for quite some time now, and some big news coming this week for LAC while simultaneously setting up for a breakout. LAC is currently holding a massive falling wedge on the daily and weekly timeframes. On top of that, LAC has some slight bullish hidden divergence on the RSI after being way in oversold territory, a double bottom, and MACD golden cross, all accompanied by a bullish cypher harmonic pattern on the daily timeframe (Not Pictured), and lastly some bullish hidden divergence on the RSI on the weekly timeframe. Bullish and will be looking for a breakout from this wedge (Broader Market Conditions Permitting)- Just some support and resistance levels to keep an eye on along with some RSI-based supply and demand zones in the meantime -- Price Targets & Previous Charts Attached In Description -
PT1- $20.81
PT2- $21.67
PT3- $22.54
PT4- $23.78
--Weekly Timeframe--
-- Previously Charted--
Falling Wedge- BullishAfter holding a long downtrend since the beginning of 2022, GOOG is finally looking ready to breakout here as Google is approaching the end of a nice falling wedge, testing the 20-day EMA while also hovering at a weekly low, heading into earnings.
Bollinger bands are squeezing (Not Pictured), a bullish shark harmonic pattern, and a MACD golden cross have formed on the daily timeframe. This is accompanied by a massive falling wedge on the weekly timeframe (See Attached Chart Below), along with some bullish hidden divergence on the RSI. Bullish and will be looking for a breakout from this wedge (Broader Market Conditions Permitting)- Just some support and resistance levels to watch along with some RSI-based supply and demand zones to keep an eye on in the meantime - (See Attached PT's &Charts Below)
PT1- $91.86
PT2- $92.54
PT3- $96.23
PT4- $96.23+
--Weekly Timeframe--
DAVA- Falling Wedge BreakoutEyeing DAVA here after closing last week reclaiming its respective 50-day EMA. DAVA's been holding a massive falling wedge on both the daily and weekly timeframe. This is accompanied with its Bollinger bands squeezing on the weekly timeframe and a Bullish Cypher Harmonic Pattern as it heads into earnings. Additionally, on the daily timeframe DAVA is holding the same falling wedge, an ABCD harmonic pattern has formed, a MACD Golden Cross, and is sitting right on its 50-day EMA with the 100-day and 200-day starting to curl upwards. Bullish and will be looking for a breakout from this wedge (broader market conditions & earnings permitting)- Just some FIB levels along with some RSI-based supply and demand zones to keep an eye on in the meantime.
--See Below for Weekly Timeframe & Price Targets--
PT1- $79.54
PT2- $81.03
PT3- $86.76
PT4- $90.71+
--Weekly Timeframe--
- Falling Wedge
- Bollinger Bands Squeezing
- Bullish Cypher Harmonic Pattern
Flagging on the 5-YearAAPL is looking quite nice here after reclaiming its 50-Day SMA. AAPL is currently testing the upper trendline of this falling wedge on the daily timeframe, while simultaneously flagging on the weekly timeframe, accompanied by a bullish butterfly harmonic pattern, a MACD golden cross, and a double bottom (See Attached Chart Below). While all signs point to bullish, personally, I would like to see some consolidation prior to scaling into some Feb 2023' Calls to play the run-up to its earnings in January. Nevertheless, AAPL is still looking primed for a breakout on the daily timeframe holding a falling wedge with buyers stepping in as depicted on the RSI along with some bullish hidden divergence. Bullish and will be looking for a breakout from this wedge (Broader Market Conditions Permitting). Just some support and resistance levels to watch along with some RSI-based supply and demand zones to keep an eye on in the meantime- Price Targets & Previous charts are attached below
PT1- $152.48
PT2- $154.12
PT3- $156.98
PT4- $160.14+
Weekly Timeframe
Previously Charted
Symmetrical Triangle - Watching closelyWatching LAC and the lithium sector closely here- LAC is currently holding a massive symmetrical triangle on the daily timeframe while holding an even larger falling wedge on the weekly timeframe (See Attached Charts Below). Additionally, LAC is sitting right on its 100-day SMA, which, is has been acting as a strong support level for quite some time. LAC's EMAs are starting to curl upwards as well (Not Pictured), accompanied with a bullish cypher harmonic pattern on the daily timeframe, and lastly some bullish hidden divergence on the RSI on the weekly timeframe. Bullish and will be looking for a breakout from this triangle (Broader Market Conditions Permitting)- Just some support and resistance levels to keep an eye on along with some RSI-based supply and demand zones in the meantime
-- Price Targets & Previous Charts Attached In Description -
PT1- $27.69
PT2- $28.56
PT3- $29.96
PT4- $31.15
--Weekly Timeframe--
--Previously Charted--
Falling Wedge - BreakoutDDOG starting to look quite nice here as buyers are starting to step in so long that the broader markets don't pullback. DDOG has been holding a big falling wedge for quite some time, getting rejected by the 20-day SMA, however will be keeping a close eye on DDOG with buyer volume starting to increase relative to seller volume. Bullish and will be looking for a breakout from this wedge (Broader Market Conditions Permitting)- Just some support and resistance levels to watch along with some RSI-based supply and demand zones to keep an eye on in the meantime
**(See Attached PT's &Charts Below)**
Daily Timeframe
- Bullish Hidden Divergence on the RSI
- Falling Wedge
- Bollinger Bands Squeezing
4-Hour Timeframe
- Bollinger Bands Squeezing
- Falling Wedge
- Bullish Gartley Harmonic Pattern
PT1- $89.90
PT2- $95.37
PT3- $99.34
PT4- $103.39+
Falling Wedge- Bullish (Long) - UpdatePosting a quick update here on SQ as buyer volume finally picked up and SQ closed the day breaking above strong resistance at the $68.84 mark while also reclaiming its 20-Day EMA. SQ has been trading sideways for quite some time and is seemingly breaking out of this falling wedge heading into earnings on 9/22' and with quadruple witching this coming Friday. Additionally, SQ closed out the weak with a golden cross on the MACD. On top of that, SQ's RSI is finally out of oversold territory on the weekly timeframe, accompanied by a massive bullish harmonic pattern and its Bollinger bands squeezing. Personally am bullish and am looking for a breakout, however, will add some downside protection due to how long SQ's been trading sideways. Nevertheless, bullish and will be watching closely for a breakout from this wedge as buyers continue to step in (broader market conditions permitting- earnings & quadruple witching)- Just some support and resistance levels along with some RSI-based supply and demand zones to keep an eye on in the meantime.
**See Below for Price Targets, Weekly Timeframe, and Previous Charts**
--Weekly Timeframe--
- Falling Wedge
- Bullish Harmonic Formed on the Daily & Weekly Timeframes
- Bollinger Bands Squeezing
- Closed Friday Breaking Above Strong Resistance
- RSI Finally Out of Oversold Territory
PT1- $78.82
PT2- $81.03
PT3- $86.76
PT4- $90.71+
Falling Wedge- Bullish- Keeping a close eye on CRM here as its finally starting to break out of this falling wedge it's been holding for quite some time now. Big increase in buyer volume relative to seller volume as shown on the RSI with some slight bullish divergence on the daily timeframe, and some more bullish divergence on the weekly timeframe (See Attached Chart Below).
- CRM closed out the week reclaiming its 20-Day SMA while also testing the upper trend line on the falling wedge it's been holding. On top of all that, CRM's EMAs are starting to curl upwards, with multiple gaps to fill on the upside heading into earnings, all signs pointing towards a breakout.
- Bullish and will be looking for a breakout from this wedge (Broader Market Conditions Permitting)- Just some support and resistance levels to watch along with some RSI-based supply and demand zones to keep an eye on in the meantime
--Weekly chart & Price Targets Attached Below--
PT1- $192.54
PT2- $196.23
PT3- $202.72
PT4- $205.18 +
--Weekly Timeframe--
Bullish- Watching Closely Keeping a close eye here on CRWD heading into earnings on 10/8'. CRWD has been testing the $195.11 mark for quite some time now and just closed out the week reclaiming its 20-Day SMA. Additionally, it would look like a smaller ascending triangle is forming within a broader falling wedge, accompanied by some slight bullish hidden divergence on the RSI, Bollinger bands squeezing (Not Pictured), and an increase in buyer volume relative to seller volume- all points to a breakout coming. I will be looking for a breakout from this wedge (Broader Markets Permitting) - Just some support and resistance levels along with some RSI-based supply and demand zones to keep an eye on in the meantime - Bullish and looking for a breakout from this wedge & triangle
--Previous Charts & Price Targets Attached Below--
PT1- $189.36
PT2- $187.64
PT3- $191.48
PT4- $195.37
AAPL- Falling Wedge - UpdateAfter selling off along with the rest of big tech over the passed few weeks, AAPL has seemingly found a bottom here. Will be watching AAPL closely for a run-up into earnings on 7/26'- AAPL is usually a classic case of "Buy the Hype, Sell the News" as it usually has a nice runup to earnings and proceeds to selloff as everything is already priced in.
However, that is most certainly not the case this go-round. AAPL is holding a nice falling wedge on the daily & 4-Hour timeframes and closed the week sitting right on its 20-day EMA. Additionally AAPL closed on the daily timeframe with a MACD golden cross, some bullish divergence on the RSI on the 4-hour timeframe, as well as a holding a bullish Gartely Harmonic pattern formed on the (See Attached Charts Below). Bullish and will be looking for a breakout from this wedge (Broader Market Conditions Permitting). Just some support and resistance levels to watch along with some RSI-based supply and demand zones to keep an eye on in the meantime- Price Targets & Previous charts are attached below
--4-Hour Timeframe--
--Previously Charted--
PT1- $142.51
PT2- $145.39
PT3- $147.96
PT4- $150.10+
FLMUSDT needs to create a new breakout The price had a breakout from the falling wedge and now the market is testing the monthly resistance at 0.12$.
The price is testing the 0.5 Fibonacci level as retracement.
How to approach it?
IF the price is going to have a breakout from the monthly resistance and retest the 4h resistance as new support, According to Plancton's strategy , we can set a nice order
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Keep in mind.
🟣 Purple structure -> Monthly structure.
🔴 Red structure -> Weekly structure.
🔵 Blue structure -> Daily structure.
🟡 Yellow structure -> 4h structure.
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Follow the Shrimp 🦐