What are the key indicators to look for when identifying an ascending wedge pattern in digital currencies?

1 answers

• May 01, 2022 · 3 years ago
  When it comes to identifying an ascending wedge pattern in digital currencies, it's important to keep an eye on a few key indicators. Firstly, look for a series of higher highs and higher lows, forming a rising trendline and a horizontal resistance line. This creates the wedge shape. Secondly, pay attention to volume. Typically, volume should decrease as the pattern develops, indicating a lack of buying pressure. Finally, watch for a breakout. A downside breakout below the lower trendline can confirm the pattern. Remember, patterns are not always reliable, so it's important to use them in conjunction with other technical analysis tools.
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