2026-01-03 13:20:31

Regarding trend channels, many people actually don't understand them deeply enough. The lines on both sides of the channel are not necessarily parallel; sometimes they gradually narrow, and other times they expand — all of which hide trading opportunities.

A key concept is the wedge channel. When the upper and lower lines slowly approach each other while the channel itself is ascending or descending, it often signals a reversal. Many people suffer losses here, thinking the trend will continue, only to be proven wrong.

Another easily confused pattern is the flag. A downward-sloping channel that looks like a bearish flag usually breaks downward through the bottom. But this is not always the case — sometimes a breakout leads to a trend reversal, and other times it just enters a consolidation zone, then possibly breaks out again upward or downward.

The most interesting situation is when the market suddenly accelerates upward and breaks through the top of the channel. This seems unstoppable, but it is often a climax rally, followed by a turn downward, even breaking through the bottom. Of course, sometimes this can also be the start of a new upward wave, forming a stronger bullish pattern. The key is to combine this with other indicators and market sentiment for judgment.

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DefiPlaybook

· 01-06 11:40

The wedge channel is indeed a big trap. According to on-chain data, about 68% of beginners still hold on stubbornly when reversal signals appear, resulting in a wave that breaks through the bottom. It is worth noting that just looking at the channel pattern is not enough; it is necessary to combine trading volume and the movements of large on-chain holders to avoid pitfalls.

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FallingLeaf

· 01-05 08:24

I have a deep understanding of the wedge channel. Last time, I got trapped because I didn't see it clearly. It's really easy to fall into the trap. When breaking the top, I thought it was going to skyrocket, but then I got slapped in the face. The key is to watch the market more and feel its temperament. Flag patterns are really easy to confuse; sometimes you can't tell whether it's going to rise or fall. That's why technical analysis requires experience; armchair analysis is useless. When the channel narrows, you need to be more cautious. The sudden move often happens at that moment.

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BanklessAtHeart

· 01-03 13:48

The wedge channel is really easy to get caught up in, only after being cut multiple times do you understand. The knowledge of this channel is much deeper than it seems; just looking at the pattern is not enough. The part about the flag pattern is correct; the market loves to do the opposite and annoy people. Breaking the top and then reversing downward—feels great for five seconds before the blood starts to flow; it's so realistic. I still think it's necessary to pay more attention to K-line details; relying solely on channels is too risky. When the channel narrows, you need to stay alert; it often signals a trend reversal. I agree, you need to combine volume and sentiment to avoid getting trapped; relying only on patterns is like giving away money.

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OnchainDetective

· 01-03 13:47

I've long noticed the wedge channel. According to on-chain data, every time the price gradually narrows, it is accompanied by large account movements, clearly indicating a trap for a reversal. The theory of flag pattern breakout seems reasonable, but actual trading patterns show that most are false breakouts + shakeouts, which are typical manipulator tactics.

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RugpullTherapist

· 01-03 13:47

The wedge channel is indeed easy to fall into traps; how many people have been slapped in the face by reversals? It's true that the channel not being parallel is not as simple as it seems. The most tricky part of the flag pattern is that it's not absolute, repeatedly getting chopped up by the market. Breaking through the top and then pulling back is a classic move, just waiting for the bottom-fishers to catch the bag. When combining indicators, you still need to be serious; otherwise, shouting slogans is useless. This analysis is thorough; it's always better than blindly chasing the rise. The reversal after the wedge narrows is indeed a gold mine, but it requires courage. People who are overly optimistic are most likely to get burned here, remember that. Fake breakouts of the channel are a common routine; I've seen it too many times. Never trust a single pattern all the time; the market is always more complicated than you think.

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MEVSandwich

· 01-03 13:46

The wedge pattern really, how many people have fallen here... Thinking they've bottomed out, only to be slapped in the face with a reversal --- With so many variations of flags, how come some people always dare to go all in? --- Breaking through the top is the most dangerous situation; after the climax, it crashes, and you're always caught in the trap --- That's right, but it's really hard to execute; when there are a bunch of indicators and conflicting signals, how do you judge? --- The key is market sentiment; this thing is more difficult to figure out than anything else --- Channels can be identified, but who can accurately pinpoint the reversal point? It's all armchair strategizing after the fact

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gas_fee_trauma

· 01-03 13:40

The wedge part was really well explained. I had previously lost money on this, thinking it would continue to rise, but it just reversed suddenly. The most frustrating thing about this stuff is that it looks like a signal, but it's all fake breakouts. I also don't understand the flag pattern; it seems like these formations are basically useless. I did catch a breakout above the top once, but it turned around quickly, so I didn't make much profit. Channels, to be honest, still depend a lot on luck.

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BlockchainBrokenPromise

· 01-03 13:31

The wedge pattern is correct; many people get caught up in the illusion of "thinking it will still rise." Breaking through the top and thinking it's about to take off? Haha, wake up, it's often just a trap to lure more in. Therefore, looking at the channel alone is really not enough; it needs to be combined with other indicators. Flag patterns are the most tricky; they look like they are about to break down, but then suddenly turn around and rise... When the channel narrows, it's actually the most dangerous. I agree with this point. I've seen many cases of sharp drops after breaking through the top—it's exciting at first, but then the bloodbath follows. The consolidation zone is the real meat grinder.

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