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Crypto · chart pattern

Falling wedge on Aave

On Aave the falling wedge showed up 62 times. The target came first 27% of the time, the stop 61%, and 11% went nowhere within 12 candles.

Counted on Aave (AAVE/USDT): daily candles from January 2021, 4-hour candles from January 2021 and hourly candles from January 2021.

By timeframe

TimeframeFoundTarget firstStop firstWent nowhere
4-hour933%44%22%
Hourly5326%64%9%

Aave against the rest

ChartsFoundTarget firstStop firstWent nowhere
Aave6227%61%11%
All Crypto charts1,50034%58%7%
Every market1,99836%58%7%

Year by year

YearFoundTarget firstStop first
2021850%25%
20221421%71%
2023922%67%
20241136%45%
20251414%86%
2026633%50%

The last 8 times

Counted by the Trading Class research engine on real past candles: entry at the signal candle's close, target 1.5 × ATR(14), stop 1 × ATR(14), 12 candles to decide, a candle that touches both counts as the stop. How we count. Past data, not a forecast and not advice.

What the falling wedge is

Price falls inside two falling lines that squeeze together, then breaks up.

Imagine someone walking down a staircase, taking smaller and smaller steps, until they stop and start climbing back up. A falling wedge is price sliding down between two falling lines that squeeze together, with each drop smaller than the last. Here price finally breaks out through the top line.

The full falling wedge lesson, video and quiz ›

Other patterns on Aave

Inside bar · Stochastic bearish cross · Stochastic bullish cross · Spinning top · Volume profile bounce · Volume profile rejection · Doji · MACD bearish cross · MACD bullish cross · EMA 9/21 bearish cross · all of them

The falling wedge elsewhere

Ethereum · Bitcoin · Solana · Litecoin · NEAR Protocol · Chainlink · Uniswap · BNB · Cardano · Polkadot

Questions

How often does the falling wedge work on Aave?

In 62 cases on Aave, the target (1.5 × ATR) came before the stop (1 × ATR) 27% of the time and the stop came first 61%; 11% went nowhere within 12 candles.

What is the falling wedge?

Price falls inside two falling lines that squeeze together, then breaks up.