FALLING WEDGE PATERN

2022年6月15日

A bullish pattern is the collapsing wedge. These two patterns, when combined with the rising wedge formation, make a significant pattern that signifies a change in trend direction. In general, a falling wedge pattern is thought to be a reversal pattern, yet there are instances where it might help a trend continue. When the APA stock price moves in an overall bullish trend before correcting lower, it forms a falling wedge pattern. Two converging trend lines are drawn within this pullback. When the price action bursts through the upper trend line, or wedge's resistance, the consolidation phase finishes. As the channel proceeds, the volume decreases. Also the characteristics of the falling wedge patern. In a clear uptrend, the most typical falling wedge formation occurs. The consolidation phase begins in the second phase, bringing the price action lower. On the daily chart above, we can observe the APA Stock Price. The price activity is on an uptrend, with new short-term lows and higher highs. You can see how the volume is decreasing at the same time. Then, focus on the essential parts of a trade which are entry, stop loss, and take profit, as well as the overall risk connected with this trading opportunity, once we find a falling wedge that meets all criteria. Later on, we enter the market at 46.00. Then set the TP Price at 48.02, the the price hit the TP price it will automatically close with profit. However, if the price keep decreases we will bear the loss but we need to minimize it so we create a stop loss at 43.75.