The figure should form at least two, and preferably three, corrective highs, through which the upper resistance line will be built.That is, figures preceded by a pronounced bearish trend for at least a month are significant for technical analysis. The reliability of this pattern is directly proportional to the period during which the movement has existed. The Falling Wedge reversal pattern should be preceded by a pronounced bearish trend in which it will form a final low.To correctly identify this pattern, the analyst needs to pay attention to the following points: Whereas in the case of triangles, only one line has an up/down the slope. The main difference between wedge patterns and triangle patterns, which also have a pair of trend lines, is that both lines are sloping up or down in the first category. These patterns have an ascending and descending trend line developing towards the same point. The wedge can take a few weeks to 6 months to complete. The wedge requires trading when the straight lines converge, i.e., during the pattern formation time frame. Wedge patterns usually form at the top or bottom of a trend.
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