When the pattern got completed (support trendline got broken), led to further downside movements. This rising wedge is a continuation pattern because the slope (upward) of the wedge is against the trend (downtrend). The slope of the wedge is against the previous trend. What makes this wedge a continuation pattern? This pattern is completed when the price breaks through the support trendline. Two or more touched points are required to form the converging trendlines. The highs and the lows of the pattern form a falling wedge. It starts out wide, but narrows as prices keep going up. Continuation Rising WedgeĪs all wedges, this one begins wide and contracts as the market reaches new highs:Ĭontinuation rising wedges are a bearish continuation pattern. Depending on where the pattern was formed and its slope it could signal a continuation of the trend or a trend reversal. The reason is simple, these patterns can be either reversal or continuation patterns. Lastly, let us study the positives and negatives of the falling wedge pattern to help you make the right decision.You may wonder why is it that we have the falling and rising wedge in a separate section.
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