S&P 500 IndexLong
S&P 500 Technical Analysis Ascending Triangle vs Rising Wedge
I've identified two potential patterns on the S&P 500 SPX chart:
Ascending Triangle (blue trendlines): Higher lows and flat highs, with breakout potential above the flat top or a breakdown below the higher lows. Indicated by blue arrows.
Rising Wedge Developing (red trend lines and arrows): Higher highs and higher lows, with a potential bearish breakout below the lower trend line or a less common bullish breakout above the upper trend line. Red arrows highlight the touch points on the rising wedge pattern.
Pattern Rules:
For a valid pattern, the following rules apply:
Ascending Triangle:
Rising Wedge:
Quick Review for Beginners:
New to chart patterns? Here's a quick rundown:
Keep in mind that chart patterns are not a guarantee of future price movements, but rather a tool to help identify potential trends and trading opportunities.
SPX chart:Ascending Triangle (blue trendlines): Higher lows and flat highs, with breakout potential above the flat top or a breakdown below the higher lows. Indicated by blue arrows.
Rising Wedge Developing (red trend lines and arrows): Higher highs and higher lows, with a potential bearish breakout below the lower trend line or a less common bullish breakout above the upper trend line. Red arrows highlight the touch points on the rising wedge pattern.
Pattern Rules:
For a valid pattern, the following rules apply:
Ascending Triangle:
- At least two higher lows
- Flat highs
- Decreasing volume
- Breakout above the flat top or breakdown below the higher lows
Rising Wedge:
- At least three touch points on each trend line (I will use as few as 2)
- Higher highs and higher lows
- Decreasing volume
- Breakout below the lower trend line or above the upper trend line (less common)
Quick Review for Beginners:
New to chart patterns? Here's a quick rundown:
- Higher lows: A series of lows that are higher than the previous ones.
- Flat highs: A series of highs that are roughly the same level.
- Decreasing volume: The trading volume decreases as the pattern forms.
- Breakout: When the price moves above or below the pattern's boundary.
- Trend lines: Lines drawn to connect the highs or lows of a pattern.
Keep in mind that chart patterns are not a guarantee of future price movements, but rather a tool to help identify potential trends and trading opportunities.
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.
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.