1. **Bullish Reversal Pattern**: Indicates a potential reversal from a downtrend to an uptrend. 2. **Converging Trend Lines**: Two downward-sloping lines that converge, connecting lower highs and lower lows. 3. **Volume Decreases**: Typically declines during the formation of the wedge, showing weakening bearish momentum. 4. **Breakout Confirmation**: A valid breakout occurs when the price moves above the upper trend line, ideally with increased volume. 5. **Trade Strategy**: Enter at the breakout, place a stop-loss below the lowest point of the wedge, and set a target price by adding the wedge's height to the breakout point.
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