What is a Wedge Formation?

Chart patterns that spark major market moves - Falling and Rising Wedges 🔍

Wedges come in two flavors: Falling and Rising. Pretty common in price analysis. They're kind of reliable, too. These formations hint at whether trends might stick around or flip, based on how price escapes the pattern 📊

Rising Wedge Formation 📉

A rising wedge happens when price squeezes between two upward-sloping lines that slowly meet. Still working as decent predictors in 2025. Fascinating stuff.

When bulls are running, these wedges often suggest momentum's getting shaky. Trouble brewing. If price drops below support, traders typically expect a fall roughly matching the wedge's height. Just how it works.

In bear markets? These rising structures usually mean those little upward breaths are done. Market wants to dive again. Seeking new bottoms. Inevitable. 🔥

Falling Wedge Formation 📈

Falling wedges pop up everywhere. Bull markets, bear markets. Doesn't matter. In bullish times, price tends to break upward, creating new peaks. Nice. During bear seasons, a falling wedge might signal a downtrend's taking a breather. Price could bounce back to where the wedge started. Not guaranteed, though. Seems plausible.

Measuring targets isn't rocket science. Take the wedge height, project from breakout point. That's your zone. Simple math. 💰

Both patterns give crypto traders some edges in these wild 2025 markets. Not perfect signals, but useful clues. ⚡

It's not entirely clear why these formations work so consistently, but traders are increasingly leaning on them to navigate today's choppy waters. Weird how geometry predicts human behavior. 🧠