The Wedge: The Deceptive Pattern That Even Experienced Traders Can Misinterpret

Hey guys, I've already lost money analyzing these patterns wrong that I'm going to tell you about. Let's talk about the wedge, this technical figure that appears in charts and that many analysts love to show as something infallible - but it's not really like that, you know?

Ascending Wedge: The Wolf in Sheep's Clothing

This formation has caused me losses several times! The ascending wedge deceives a lot of people because it shows prices rising. You see those two converging lines upward - the highs and lows getting higher and higher - and you think the market is booming.

But it's a trap! It usually means that the market is losing strength and will collapse. When it breaks the lower line, it falls hard! I've seen many of my colleagues losing money because they ignored this signal.

The strategy? Sell when it breaks down. The objective? Usually the size of the wedge itself below the breakout. But be careful - often it doesn't even get there because the manipulated market doesn't allow it!

Descending Wedge: It's Not Always So Obvious

I like this one more! It forms when prices are falling but in a less pronounced way, creating two descending lines that converge. It seems like the market is weak, but in reality, it is accumulating strength to rise.

When it breaks the top line, it usually goes up quite a bit. The goal is the size of the wedge projected upwards, but honestly? It doesn't always work as the books say.

Failures That No One Talks About

Volume is important! If it doesn't increase during the breakout, be suspicious. I've seen several "false breakouts" that ended up costing me dearly!

And the most important thing: large institutions know these patterns and love to manipulate the market to deceive the small trader. That's why we see so many false breakouts!

Real Cases

Once I identified a perfect ascending wedge in a popular token. I shorted when it broke down... and guess what? The market shot up strong after stopping me out! Days later it plummeted, but I had already lost.

With the descending wedge, I've had more luck. In gold, at the beginning of this year, it gave a perfect signal before the recent rise. But for every one that works, two fail!

These patterns can help, but they are not magical like many "gurus" on the internet try to sell. Use them with other indicators and always protect your capital with stops. Don't be like me, who has already lost a lot of money blindly trusting these drawings on the chart!

Remember that the market does not follow strict rules - it follows big money, and that money is not interested in respecting your chart patterns...

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