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Crypto · chart pattern

Falling wedge on Optimism

On Optimism the falling wedge showed up 43 times. The target came first 35% of the time, the stop 60%, and 5% went nowhere within 12 candles.

Counted on Optimism (OP/USDT): daily candles from June 2022, 4-hour candles from June 2022 and hourly candles from June 2022.

By timeframe

TimeframeFoundTarget firstStop firstWent nowhere
Daily1100%0%0%
4-hour1060%40%0%
Hourly3225%69%6%

Optimism against the rest

ChartsFoundTarget firstStop firstWent nowhere
Optimism4335%60%5%
All Crypto charts1,50034%58%7%
Every market1,99836%58%7%

Year by year

YearFoundTarget firstStop first
2022714%71%
20231050%40%
2024825%75%
20251145%55%
2026729%71%

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 Optimism

Inside bar · Stochastic bullish cross · Stochastic bearish cross · Spinning top · Volume profile bounce · Volume profile rejection · Doji · MACD bullish cross · MACD bearish 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 Optimism?

In 43 cases on Optimism, the target (1.5 × ATR) came before the stop (1 × ATR) 35% of the time and the stop came first 60%; 5% went nowhere within 12 candles.

What is the falling wedge?

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