Is LUKSO About to Explode? Spotting a Bullish Falling Wedge!A falling wedge is a bullish chart pattern often signaling an upward breakout. It forms as price makes lower highs and lower lows within converging trendlines, with volume decreasing over time.
Key Points:
Breakout Direction: Falling wedges typically break upward, with a 65-75% chance in downtrends (reversal) and even higher in uptrends (continuation).
Volume: A breakout is more reliable when accompanied by increasing volume.
Target: Measure the wedge’s height and add it to the breakout point to estimate the price target.
When to Buy:
Buy when the price breaks above the upper trendline and closes with strong volume.
Alternatively, place a limit order slightly above the trendline to catch the breakout.
When to Sell:
Sell at the target price (calculated from the wedge's height).
Consider taking partial profits near resistance levels or if momentum weakens.
Set a stop-loss below the lower trendline to manage risk.
In the chart, the price is nearing the upper trendline. Watch for a breakout with volume confirmation before entering!
