Profilo

Data di iscrizione: 29 set 2022

Chi sono

Wedge pattern: rising wedge pattern and falling wedge pattern



Wedge pattern and its types: the rising wedge pattern and the falling wedge pattern are one of the main classical patterns of technical analysis.

The figure is mainly referred to as a trend continuation graphic figure, this figure is one of the many variations of the triangle. Simply put, this is the same triangle, but having its own characteristics. The main feature of the figure is the presence of a significant inclination of both its sides, either up or down. Moreover, both sides of the figure converge at the end, as in the case of the “Triangle” (the angles of inclination of these sides are different, otherwise they would be parallel, and this would be more likely a “Channel”). The second main difference is that the period of formation of the "Wedge" is much less than that of the "Triangle". More about rising wedge pattern and falling wedge pattern here redot descending wedge pattern.

In an ideal situation, a typical slope is considered to be a slope against the direction of the trend, and the price breakout should be in the direction of the current trend.

As with “Triangles” (except for diverging triangles), when the “Wedge” pattern is formed, the amplitude of fluctuations and volume indicators gradually decrease. Then, at the moment the figure is broken, the volume indicators increase sharply.




Wedge figure

There are two types of this tool:

- Rising Wedge pattern, both sides of the pattern are directed upwards

- Falling Wedge pattern - both sides of the figure are directed down

A rising wedge pattern forms when prices slow down and a narrowing pattern forms. Prices can no longer rise further, but at the same time, as it were, they continue to gradually update local highs. This suggests that the market is gradually increasing the pressure of sellers (bears).

A falling wedge pattern is formed when the decline in prices slows down and a narrowing pattern is formed, and volume readings are gradually decreasing. Prices are no longer able to decline further, but at the same time, they continue to gradually update local lows. This suggests that the market is gradually increasing the pressure of buyers (bulls).

L

lofiressamed213

Altre azioni