$PNUT disclaimer it's just my opinion!
#DYOR!! Bullish Falling Wedge Confirmation
1. Bullish Falling Wedge Characteristics:
This pattern consists of two descending trendlines that meet at a point (convergence).
Volume often decreases as the pattern forms, indicating weakening selling pressure.
It usually ends with an upward breakout.
2. Indications from the Chart:
Price moves in a descending wedge pattern with clear upper and lower trendlines.
The direction of the breakout that you expect to be upward (bullish) is in accordance with the nature of this pattern.
The Aroon Oscillator seems to indicate a weakening bearish trend, which could support a potential reversal to bullish.
3. Breakout Confirmation:
To make sure this pattern is truly bullish, you can wait for:
Breakout: Price breaks through the upper trendline with high volume.
Retest: Price returns to the upper trendline (now support) to confirm the validity of the breakout.
Additional Advice
EMA 9: You can monitor whether the price is able to stay above the EMA 9 after the breakout. If yes, that is an additional bullish signal.
Stop-Loss: If you enter, place a stop-loss below the wedge support to minimize risk if price reverses.
Volume: Watch the volume during the breakout to determine momentum.