Recently, I noticed a pattern that often triggers before serious downward moves. It's about the expanding wedge—a bearish signal that appears when the market starts to lose momentum after an upward trend.

The essence is that the price continues to make new highs, but these highs become less convincing. At the same time, lows also rise, but the gaps between them increase. This results in an expanding wedge—two trend lines diverging outward, signaling growing uncertainty and volatility.

To confirm the pattern, there should be at least three waves within this wedge. Each wave becomes larger than the previous one—that's the main sign that the momentum is weakening, not strengthening. Traders draw resistance through higher highs and support through higher lows, and both lines clearly diverge upward.

What’s next? When the expanding wedge matures, a breakout usually happens suddenly and quickly. And most often, it’s a breakdown—support fails. I’ve seen this with $TRUMP, $WLFI , and other assets. Volatility increases, uncertainty grows, and ultimately, the bears take control.

Of course, this isn’t a guarantee, but the pattern works often enough to consider it. If you see an expanding wedge after an uptrend, it’s worth being prepared for a reversal. Many traders use this as a signal to prepare for a short position or to exit long positions.