![]() In the Gold chart below, it is clear to see that price breaks out of the descending wedge to the upside only to return back down. Connecting the lower highs and lower lows will reveal the slight downward slant to the wedge pattern before price eventually rises, resulting in a falling wedge breakout to resume the larger uptrend. The descending wedge pattern appears within an uptrend when price tends to consolidate, or trade in a more sideways fashion. ![]() Get My Guide How to Trade the Falling Wedge Patternīelow are various ways to trade the falling wedge using technical analysis: Look for break above resistance for a long entry.Oversold signal can be confirmed by other technical tools like oscillators.Look for divergence between price and an oscillator like the RSI or stochastic indicator. ![]() The two lines will slope downwards and converge
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