Wedge in Stock Market – Chart Analysis

  • The Wedge chart pattern can be either a continuation or reversal pattern.
  • It is similar to a Symmetrical Triangle except that the Wedge Pattern slants in an upward or downward direction, while the symmetrical triangle generally shows a sideways movement.
  • The other difference is that Wedges tend to form over longer periods, usually between three and six months.
  • The fact that Wedges are classified as both continuation and reversal patterns, can make reading signals confusing.
  • However, at the most basic level, a falling wedge in an uptrend is bullish and a rising wedge in a downtrend is considered bearish.

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