Verium Digita Reserve (VRM) -- Falling Wedge (Reversal)

17 ott 2017

The Falling Wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge. In contrast to symmetrical triangles, which have no definitive slope and no bias, falling wedges definitely slope down and have a bullish bias. However, this bullish bias cannot be realized until a resistance breakout.

The falling wedge can also fit into the continuation category. As a continuation pattern, the falling wedge will still slope down, but the slope will be against the prevailing uptrend. As a reversal pattern, the falling wedge slopes down and with the prevailing trend. Regardless of the type (reversal or continuation), falling wedges are regarded as bullish patterns.

I don't think it will break the resistance zone of .00062860 in this first falling wedge breakout. I think it will most likely hit the resistance zone area then retreat for further consolidation before further up growth breaking through the resistance zone. It will probably form an Ascending Triangle (Continuation) along the resistance zone before breaking through for more growth heading towards the first profit target of 0.001200.