Descending Wedges: My Personal Experience with This Pattern

Wow, the descending wedges! I've spent whole nights watching these formations on my charts and I must confess that they've given me some of my best trades... and also some of my worst fiascos.

Let's see, this is simple: a descending wedge forms when the price is decreasing but with less and less strength, as if the sellers are getting tired. The trend lines converge sloping downwards, but beware, the upper line falls faster than the lower one.

The interesting thing is that this pattern usually indicates that buyers are about to take control. And when they break that upper line... boom! That's where I enter.

But be careful, not all platforms show you these formations correctly. Some are a disaster with their charts and make you see patterns where there are none. That's why I always check multiple sites before putting my money in.

From my experience, there are two main types:

• Those that appear after a drop and indicate a bullish turn (my favorites)
• Those that arise during a full ascent and are just a pause before continuing upward

Do you want to know how I operate them? Simple:

1. I identify the two converging lines well.
2. I patiently await the breakout ( although sometimes I get ahead of myself, I admit it)
3. I measure the initial height of the wedge to calculate how far the movement can go.
4. I place my stop-loss just below the last low

The most common mistake I see in other traders is entering too early. How many times have I fallen into that trap! Or worse yet, ignoring the volume. A breakout without volume is like a party without music - it will probably end up disappointing.

And I'll be honest, this is not an exact science. Sometimes Bitcoin does whatever it wants, especially when there are unexpected news or big players moving the market.

Right now, with BTC hovering around $120,000, I'm seeing some interesting formations on the 15-minute charts. There could be an opportunity there for those with a strong stomach... but remember, never enter without a stop-loss.

Descending wedges can be pure gold if you know how to interpret them well!