How Do I Interpret Falling Wedge Chart Pattern?

How to Analyze Falling Wedge Chart Pattern

Falling Wedge Trading Pattern

The falling wedge chart pattern is formed in a downward trend and this falling wedge chart pattern shows that the downward gold trend direction of the xauusd price movement is going to continue.

Falling wedge xauusd chart pattern shows that there is a xauusd price support level that the gold sellers keep pushing - each time moving this xauusd price support level lower - and once this xauusd price support level breaks - the xauusd price will continue moving downwards.

The falling wedge chart pattern support level temporarily prevents the xauusd price from declining and moving lower, while the descending sloping line above the falling wedge chart pattern shows that gold sellers are still present.

A downside xauusd price penetration of the lower line of the falling wedge chart pattern is interpreted as a sell signal for xauusd price breaking out downward from a falling wedge chart pattern - this indicates the gold downwards trend will continue and selling will follow.

Falling wedge xauusd chart pattern is found within a downwards gold trend - falling wedge chart pattern forms as a xauusd price consolidation period within the downward gold trend and this falling wedge chart pattern shows a downside gold trend continuation will follow.

Interpret Falling Wedge Chart Pattern?

The xauusd price formed a falling wedge chart pattern during its downward gold trend which led to further selling after a xauusd price breakout downwards and a continuation of the xauusd trading downward trading trend.

The sell signal is generated when the price breaks the lower horizontal sloping line of the falling wedge chart pattern as gold selling resumes to push the xauusd price lower - continuation of the xauusd trading downward trading trend.

How Do You Analyze Falling Wedge Chart Pattern