Trading strategy
Pine Script® Look for the two converging, downward-sloping trendlines with at least two touches on each. Volume should ideally decrease as the pattern develops.
Pine Script® A bullish signal occurs when the price breaks above the upper trendline.
Pine Script® Confirm the breakout with an increase in trading volume.
Pine Script® Set a stop-loss order below the lower trendline and a take-profit target by projecting the wedge's widest point upward from the breakout.
Reliability
The falling wedge is considered a reliable bullish pattern with a reported success rate of 74% in bull markets. Its reliability is strengthened by increasing volume upon breakout.
Identify and Confirm:
Wait for Breakout:
Confirm Breakout:
Manage Risk:
Reliability
The falling wedge is considered a reliable bullish pattern with a reported success rate of 74% in bull markets. Its reliability is strengthened by increasing volume upon breakout.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.