The "Falling Wedge" Pattern — A Trap for BearsBitcoin/USD Tether Perpetual ContractBINGX:BTCUSDT.PIndicator_TonyToday's mini-lesson is on the "Falling Wedge" pattern, one of the most interesting reversal patterns. ➡️ What is it and what does it look like? It's a narrowing downward channel where the price makes lower lows, but the highs are dropping even faster. Two descending lines — support and resistance — converge: ▪️Upper line (resistance): Steeper. ▪️Lower line (support): Shallower. Visually, it's a "triangle," but with a clear downward slope on both sides. It forms at the end of a downtrend. ➡️ Market Logic: Why is this a reversal? This is a pessimism trap. The fall inside the wedge looks like a trend continuation, but each downward step happens on decreasing volume — sellers are exhausting themselves. Buyers gradually start absorbing the supply. When the last bear has closed their position, there's almost no resistance left — a sharp bounce upwards begins. The pattern signals that selling pressure has been exhausted. ➡️ Key Identification Rules: ▪️A clear downward slope on both converging lines. ▪️Minimum 2-3 touches on each boundary to confirm the shape. ▪️Decreasing trading volume as the price moves towards the end of the wedge — a key indicator of seller exhaustion. ▪️The breakout almost always happens through the UPPER line (resistance), confirming the reversal. ➡️ Trading Plan: How to act? Do NOT sell inside the wedge! The downward movement is deceptive. ▪️Buy Entry Signal: A candle closes above the upper (resistance) line of the wedge. ▪️Ideal Entry Point: A retest of the broken resistance line, which now acts as support. ▪️Stop-Loss: Place it below the wedge's lower line or below the last low within it. ▪️Target (Take Profit): The minimum target is equal to the height of the wedge's base (at its widest part), projected upwards from the breakout point. ➡️ Key Takeaways: ▪️Essence: A bullish reversal pattern that forms during a downtrend. ▪️Main Sign: Downward movement on declining volume. ▪️Target: ≈ height of the wedge's base. 👉 Look for this pattern after prolonged downtrends. 💡 My Strategy: When the price approaches a potential entry point, I follow a clear algorithm. No pending orders — only alerts for the approach and manual control. ➡️ Here's what I do at that moment: ▪️I look at the RSI (5min relative to 60min). If the indicator is in the oversold zone, it's a signal to pay attention. If not — I skip it and wait further. ▪️I draw a trend line on the RSI itself along the local "HIGHS" (or lows, depending on the trade direction). ▪️I wait for a breakout of this trend line. Once the line is broken, I bring in the rest of my arsenal. ➡️ I check a combination of indicators: ▪️At least two oscillators have changed color to green/red. ▪️Whales have exited their sells/buys. ▪️A buyer/seller impulse has appeared. ▪️If a Pump/Dump signal was received earlier, that's a huge positive factor for me. ➡️ Why is this important? RSI gives me the first signal, but I only make a decision based on a confluence of factors. RSI without confirmation leads to a false entry. RSI + oscillators + whales + impulse = 95% probability that the trade will be profitable. It is this comprehensive approach that allows me to enter at the moment of maximum momentum, catch the best price, and trade with the most favorable leverage. Those who have been with me for a while have seen the results and the win rate. I recommend you adopt this approach! 🎯 Profit to everyone! 🚀