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Why is an ascending wedge pattern considered a bullish chart pattern in the realm of digital assets?

avatarfdgfdgNov 28, 2021 · 3 years ago1 answers

Can you explain why an ascending wedge pattern is considered a bullish chart pattern in the realm of digital assets? What are the key factors that contribute to this belief?

Why is an ascending wedge pattern considered a bullish chart pattern in the realm of digital assets?

1 answers

  • avatarNov 28, 2021 · 3 years ago
    An ascending wedge pattern is widely regarded as a bullish chart pattern in the realm of digital assets. This belief is based on the observation that the price tends to break out to the upside after the formation of an ascending wedge. The upward sloping trendlines of the wedge indicate that buyers are gradually gaining control and are likely to push the price higher. When the price breaks out above the upper trendline, it confirms the bullish bias and may attract more buyers into the market. However, it's important to note that no pattern is foolproof, and traders should always use proper risk management techniques and consider other factors, such as market fundamentals and news events, when making trading decisions.