206
Technical
Analysis
of the United States
Cannabis Market
204
Falling Wedge:
A falling wedge is essentially the mirrored image of the rising wedge, where instead of the prices going up, the prices are moving downwards. So the condition will be bearish initially. Initially, the base of the wedge will have more volatility and price fluctuations will appear wider. As time progresses and the prices keep sliding down further the price differences in the highs and lows become less and less of a difference and thus make the chart form it’s wedged pattern. The key difference here is that when the prices get tighter and tighter they will eventually break up or down. However, since the prices have been rallied by the bears for a prolonged period of time there is likely little energy left with the ears as the selling pressure eases and thus the probability of a bullish break up is more likely. When the prices break up that is the signal for the bears to go back into hibernation and for the bulls to confirm with the other indicators and analysis to start the next bull run.