The peaks are at 345 on the 8th of June and 187 on the 26th of July. To form mine, I connected the trough at 204 and the trough at 157 which occurred on 11th of June and the 15th of July, respectively. A common stop level is just outside the wedge on the opposite side of the breakout. It bounces at around 130 and the breakout is around 156. The target can be estimated through the technique of measuring the height of the back of the wedge and extending it in the direction of the breakout.

These wedges tend to break upwards.Ĭonservative traders may look for additional confirmation of price continuing in the direction of the breakout. In other words: the highs are falling faster than the lows. The second is Falling wedges where price is contained by 2 descending trend lines that converge because the upper trend line is steeper than the lower trend line. If we breakout and reach the Full Measured Move it will Hold Support and Rally to 0.675.

FTM is above a previous congestion zone and is attempting to breakout of a Descending Boradenign Wedge. In other words: the lows are climbing faster than the highs. FTMUSD: Descending Broadening Wedge Sitting Above Support Zone. The first is rising wedges where price is contained by 2 ascending trend lines that converge because the lower trend line is steeper than the upper trend line. There are 2 types of wedges indicating price is in consolidation. The second is Falling wedges where price is contained by 2 descending trend lines that converge because the upper trend line is steeper than the lower trend line. The Wedge pattern can either be a continuation pattern or a reversal pattern, depending on the type of wedge and the preceding trend.

Descending wedge breakout