Nova Trading | Falling Wedge Pattern (BULLISH)

Today we are discussing another pattern, the falling wedge.

This pattern is another continuation pattern. Meaning it will continue the trend after consolidating in a certain pattern.

The falling wedge is easy to spot because of the accurate trend-line touches while narrowing it's PA (price-action).

Example:

The best moment to enter is when it's most consolidated and reaching for a support/demand area. this is where it has the biggest chance of bouncing. If the bounce has enough volume it might break the overall down-trend line and start another uptrend.

Stop-loss below the lower wick/swing-low should be sufficient.

Take-profit's could be set around the resistance levels shown below:

If you apply all the rules + good risk management, this pattern can bring you crazy profits. 

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See you guys next week!