The Index has made a Falling Wedge and is trading in a wedge, usually a falling wedge breakout is expected on the higher side.

Often but not always preceded by an extreme that is called climax. If no climax then likely to be a continuation pattern.

Rising Wedge Performance is Average, failure rate is 6% which is exceptional, volume during the pattern is declining and after breakout volume doesn't matter.

Falling Wedge Performance is Average, Failure rate is 2% which is exceptional, volume during the pattern is declining and after breakout volume doesn't matter.

We can't see a climax here so are expecting this as a continuation pattern. As mentioned above breakout on the downside has a good winning percentage and failure rate is low, entering after breakout will be a very good entry.

FR40

Aug 01 2021

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