Description of the Wedge Patterns
Updated
Hi every one
The wedge pattern can be used as either a continuation or reversal pattern, depending on where it is found on a price chart. There are two types of wedge pattern: the rising (or ascending) wedge and the falling (or descending wedge).
1-Identifying the rising wedge pattern in an uptrend :
A rising wedge in an uptrend is considered a reversal pattern that occurs when the price is making higher highs and higher lows. As the chart Pattern number one shows, this is identified by a contracting range in prices. The price is confined within two lines which get closer together to create a pattern. This indicates a slowing of momentum and it usually precedes a reversal to the downside. This means that you can look for potential selling opportunities.
-Identifying the rising wedge pattern in an downtrend :
A rising wedge in a downtrend is a temporary price movement in the opposite direction (market retracement). As in the case of a rising wedge in a uptrend, it is characterised by shrinking prices that are confined within two lines coming together to form a pattern. It indicates the continuation of the downtrend and, again, this means that you can look for potential selling opportunities.
2-Falling wedge :
The falling (or descending) wedge can also be used as either a continuation or reversal pattern, depending on where it is found on a price chart. This lesson shows you how to identify the pattern and how you can use it to look for possible buying opportunities.
-Identifying the falling wedge pattern in a downtrend:
If the falling wedge appears in a downtrend, it is considered a reversal pattern. It occurs when the price is making lower highs and lower lows which form two contracting lines. The falling wedge usually precedes a reversal to the upside, and this means that you can look for potential buying opportunities.
-Identifying the falling wedge pattern in an uptrend:
A falling wedge found in an uptrend is considered a continuation pattern that occurs as the market contracts temporarily. It indicates the resumption of the uptrend. Again, this means that you can look for potential buying opportunities.
Traders, if you liked this idea or have your opinion on it, write in the comments, We will be glad.
Thank you for seeing idea .
Have a nice day and Good luck.
The wedge pattern can be used as either a continuation or reversal pattern, depending on where it is found on a price chart. There are two types of wedge pattern: the rising (or ascending) wedge and the falling (or descending wedge).
1-Identifying the rising wedge pattern in an uptrend :
A rising wedge in an uptrend is considered a reversal pattern that occurs when the price is making higher highs and higher lows. As the chart Pattern number one shows, this is identified by a contracting range in prices. The price is confined within two lines which get closer together to create a pattern. This indicates a slowing of momentum and it usually precedes a reversal to the downside. This means that you can look for potential selling opportunities.
-Identifying the rising wedge pattern in an downtrend :
A rising wedge in a downtrend is a temporary price movement in the opposite direction (market retracement). As in the case of a rising wedge in a uptrend, it is characterised by shrinking prices that are confined within two lines coming together to form a pattern. It indicates the continuation of the downtrend and, again, this means that you can look for potential selling opportunities.
2-Falling wedge :
The falling (or descending) wedge can also be used as either a continuation or reversal pattern, depending on where it is found on a price chart. This lesson shows you how to identify the pattern and how you can use it to look for possible buying opportunities.
-Identifying the falling wedge pattern in a downtrend:
If the falling wedge appears in a downtrend, it is considered a reversal pattern. It occurs when the price is making lower highs and lower lows which form two contracting lines. The falling wedge usually precedes a reversal to the upside, and this means that you can look for potential buying opportunities.
-Identifying the falling wedge pattern in an uptrend:
A falling wedge found in an uptrend is considered a continuation pattern that occurs as the market contracts temporarily. It indicates the resumption of the uptrend. Again, this means that you can look for potential buying opportunities.
Traders, if you liked this idea or have your opinion on it, write in the comments, We will be glad.
Thank you for seeing idea .
Have a nice day and Good luck.
Comment
For example { Rising wedge }
Comment
For example { Falling wedge }
Comment
✅My signals On Telegram:
t.me/CobraVanguard
✨Join my trading platform and start trading there!
bingx.com/invite/T66GYB/
✅KYC-Free Crypto Exchange, Signup for 20% Fees Off and $45,145 Rewards.
partner.zoomex.com/aff/ZX902593
t.me/CobraVanguard
✨Join my trading platform and start trading there!
bingx.com/invite/T66GYB/
✅KYC-Free Crypto Exchange, Signup for 20% Fees Off and $45,145 Rewards.
partner.zoomex.com/aff/ZX902593
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.