If this pattern trends upwards, then the pattern is a reversal. This occurs when the market experiences higher lows and higher highs coupled with a contraction in wedge. Whenever there is a continuation of the basic trend, the pattern seizes to be effective. Therefore, the wedge patterns are not major patterns. The rising and falling wedges are just but a part of the major trend. However, indecision is more prevalent here as buyers and sellers are matched, and the direction of the expansion is less certain. Similar to the flag pattern, this formation consolidates towards the major break-out. The breakout of price also shows another big difference. The difference between this pattern and a regular triangle is that the boundary lines slope either upwards or downwards. It takes about 4 weeks before the wedge pattern is complete and the pattern consists of rising and falling slants. In the wedge pattern, trading activities take place within two converging lines, leading to the formation of the pattern. The pattern either forms at the top of the market trend or at the bottom. The upward trend is known as the rising wedge while the downward trend is known as the rising wedge. It is defined by a price range that contracts and trends either upward or downwards. Wedge pattern is most common in traded products such as bonds, futures, or stocks. Other technical trading patterns are flag, channel, and head and shoulders patterns. Wedge pattern is a pattern used in technical trading which essentially means using past repetitive data to predict how stock prices will move.
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