The formation of this figure occurs in a descending trend

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Which is why beginner traders sometimes make mistakes when opening trades. The main difference between the "falling wedge" and the ascending or descending "triangle" is that the support and resistance lines move downward in the "falling wedge", while the "triangle" has a clear horizontal line of support or resistance. In terms of risk management, price movement should be measured as the height of the wedge itself. However, in case of a significant increase in trading volume, prices may head further. LiteFinance: 10 Day Trading Patterns for Beginners |  LiteFinance An example of the “falling wedge” pattern can be seen below on the .

Minute chart of Apple Inc. stock. In the image you can see that the price was gradually falling after the main uptrend, at the same time reducing the lows and highs. After the narrowing of the trading  Peru Mobile Number List channel, there was an impulsive breakout of quotes upwards. After waiting for a new test of the surpassed resistance level, a buy position could be opened with the aim of surpassing the height of the descending wedge. The stop-loss in this case should be placed at the lower limit of the trading channel LiteFinance: 10 Day Trading Patterns for Beginners |  LiteFinance «Rounded floor»‎ This pattern resembles the “cup with handle” pattern.



But differs in the absence of a “handle.” , that is, when the bears' strength is exhausted and the price has reached the local bottom on the chart, activating the bulls. After the consolidation of the asset in the lateral channel, the quotes break the “neck” level upwards and move in a corrective upward dynamic towards the height of the formed figure. LiteFinance: 10 Day Trading Patterns for Beginners |  LiteFinance The formation of the “rounded bottom” pattern can be seen below on the 30-minute chart of XAGUSD . After the decline in prices, the asset found the local bottom.