![]() ![]() SummaryĪ wedge is a chart formation that shows a narrowing price range over time, where price highs in an ascending wedge decrease incrementally, or in a descending wedge, price declines are incrementally smaller. The falling wedge is a bullish pattern and the inverse version of the rising wedge. ![]() (Sellers must buy in order to get out of their short position.) This breakout causes sellers to exit out of their short positions causing the price to rise further. They can be found in uptrends too, but would still be regarded as bullish.Īs the trend lines get closer to convergence, a violent spike occurs breaching the price through the upper trend line. The falling wedge is generally considered bullish and is usually found in uptrends.
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