Descending Wedge: The Trap Every Crypto Trader Must Know

Have you noticed those strange patterns in the charts where the price is getting increasingly “tight”? That's a falling wedge, and it's more important than you think. It's not just pretty lines – it's a trend reversal machine waiting for the right moment.

The Pattern in 5 Simple Steps

First of all: you need a downtrend. Without a previous drop, there is no possible reversal.

Then:

• Upper line: Connects 2-3 progressively lower peaks (decreasing resistance)
• Lower line: Connects 2 decreasing lows (falling wedge)
• The space between them narrows: The narrower, the better the pattern.
• Volume is key: When it breaks, it needs strong volume. If there is no volume, it is a false breakout – those turns to sweep Stop Loss before the true move.
• Direction matters: Break up = pump; break down = continue the fall

The Winning Combo

Don't just rely on the lines. Use RSI to detect divergence, check that MA50 and MA200 are aligned, and always check volumes. Whales love to make fake breakouts to hunt stops – don't fall for it.

The Royal Play

These wedges are everywhere now in small altcoins. If you spot a well-formed one, mark it on your watchlist. When it breaks WITH volume, it is likely to be the launch point. It's not guaranteed, but the odds are in your favor.

Pro tip: Volume confirms everything. Without volume, it's just a pretty pattern without power.