I've noticed that many beginners overlook one of the most reliable patterns on the chart — the bullish wedge. This pattern really works if you know what to look for.

You see, when the price narrows in an upward direction, the upper and lower trend lines gradually converge upward — this is the formation of the pattern. Trading volumes decrease during this time, the amplitude of fluctuations diminishes, but the angles of the lines still point upward. This distinguishes it from other formations.

What does such a pattern on the chart actually mean? A bullish wedge indicates that sellers are losing strength, even though they create the illusion of pressure. The market is accumulating energy before a breakout. When the upper boundary is broken, the price usually soars sharply because everyone sees this signal and starts buying.

How do I trade this pattern in practice? First, I make sure that it is indeed a narrowing formation with an upward slope, not some other figure. Then, I wait for a confident breakout of the upper line — I should enter only after the breakout, not before. If I see a sharp increase in volume during the breakout, it confirms the signal and makes it stronger.

I place my stop-loss below the last minimum inside the wedge to protect myself from false breakouts. Over long trading experience, I’ve noticed that the bullish wedge is one of the most probable patterns that yield good results if identified correctly and confirmed. This works especially well on BTC.