How to Technical Analysis of Falling Wedge Pattern – I’ve been asked to research what happens in the market before the price of a stock goes up high.
One of the results is that the FALLING WEDGE turns out to be very powerful in predicting the increase (and the continuation of the increase) of stock prices in Indonesia.
Falling Wedge (FW) the easy way is a technical pattern that looks like a $AMRT chart (Source Alfaria) like this.
FW at first glance looks like a down trend (Lower Lows & Lower Highs) with the price range getting smaller.
FW indicates a bullish or continuation phase
In bandarmology, a Falling Wedge can be formed when the dealer starts to take profit in the bullish phase, but part of the take profit is followed by other holders.
Not all positions are sold, only some and plan to buy again because they believe the trend will continue
Technically, to use the falling wedge, we need to wait for the price to break the resistance or the upper line.
After that, there are 2 possibilities. The price will continue or there is a price correction first.
So that friends are familiar, here I attach a number of Falling Wedges throughout 2022 that were found in several stocks in Indonesia that have succeeded, are ongoing, or are waiting for a breakout (to be a watchlist).
In addition, there are several stocks whose falling wedge is still running until the last trading day yesterday. For example:
$PRDA again the Falling Wedge process. Still waiting for the breakout..
The way to take profit is until the last high price – see picture at the beginning of the thread – as TP 1.
For the second take profit zone, it depends on what happens in TP 1. If it continues, we increase the TP to 2 by paying attention to the higher Timeframe.
SL is below the low price thanks
So let’s not be too much.
Besides Falling Wedge, there are 3 other things that my team and I encountered. Maybe we’ll talk about it another time.
Everyone has their own holy grail. Just look for the one that fits, if FW doesn’t suit you, then just ignore it
Good night & holidays.