This graph is based on the analysis of stocks. The picture above is an example of falling wedge, where prices have been falling. In the falling wedge, the price has dropped, and the buying pressure is not great, but the interest of investors has gradually decreased. Although the price has dropped, each new downward fluctuation is weaker than the previous one. Finally, when the demand disappears completely, the price will rise in reverse.
Data expansion: the connecting line of the rising high point and the connecting line of the falling low point intersect at the lower right (forming a downward wedge), and finally the stock price breaks through the pressure line and closes above it. In the process of forming a wedge, the trading volume is decreasing, and the closer the stock price is to the tip, the smaller the trading volume is, but when the stock price rises above the pressure line, the trading volume is obviously enlarged.
Falling wedge is an air trap. Buy signal. After breaking through the pressure line, there will often be a retreat, and it will stop falling and rise near the original pressure line, thus confirming that the upward breakthrough is effective. In most cases, the falling wedge will break up, and in a few cases, it will break through and fail. When breaking down, you need to pay attention to the stop loss.