Refreshing myself on the mechanics of a falling/descending wedge during breakout. As I have understood from some light reading the target is $55k for the move and the Descending Wedge is characterised by:
- Lower Lows, Lower Highs
- Divergence on RSI
- Drop and rise in volume
Benefits seem to be:
- Obvious pattern
- Decent risk-reward ratios
- Small stop-loss risk
- Opportunity to enter a market after initial move
A lot of wedges have had a number of fakeout candles recently so there is risk that this might break to the upside then break back down further. Thinner white line indicates the wedge but I would wait for resumption after the test of the break and enter after the thicker white line that indicates possible downward resistance not recently retested. I bolted early and bought at $43k which it seems is not best practice - better probabilities at $46k entry
Best, Hard Forky
- Lower Lows, Lower Highs
- Divergence on RSI
- Drop and rise in volume
Benefits seem to be:
- Obvious pattern
- Decent risk-reward ratios
- Small stop-loss risk
- Opportunity to enter a market after initial move
A lot of wedges have had a number of fakeout candles recently so there is risk that this might break to the upside then break back down further. Thinner white line indicates the wedge but I would wait for resumption after the test of the break and enter after the thicker white line that indicates possible downward resistance not recently retested. I bolted early and bought at $43k which it seems is not best practice - better probabilities at $46k entry
Best, Hard Forky
