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Ascending narrowing wedge3/19/2024 ![]() ![]() ![]() The closer to the apex price gets the odds for a breakdown of the immediate price range becomes more likely. Buyers & sellers create this narrowing range-bound price action and eventually prices squeeze to an A pex. If volume remains the same or increases during the wedge formation then the signal will be less reliable. Volume usually diminishes as the pattern develops & this becomes one of the best keys to determine when the pattern may break & it represents the bearishness of the formation. Traders should be prepared to adjust the trendlines as needed with additional swings. Rising Wedges vary in their duration, but will have at least two swing highs and two swing lows in price. The shape of the Rising Wedge is altered by the slope of the ascending resistance line which should be tighter than the steeper angle slope of the lower ascending support line. By definition this means the Rising Wedge pattern outlines an immediate uptrend pattern in prices with both the immediate support & resistance trendlines slanted in the opposite direction of the larger bearish trend. Visually Rising Wedges are characterized by a contracting range in prices with ‘converging’ or inclining toward each other, trendlines that create higher lows & higher highs. Regardless of environment the contracting, narrowing price range outlined by the Rising Wedge is an indication that the immediate uptrend is losing strength and considered to have a definite bearish bias. Typically a Rising Wedge is presented as either a bearish trend continuation pattern or a reversal pattern depending on the trading environment in the background. The Rising Wedge as a price pattern is fairly common and presents in all markets, time frames, & price ranges. ![]()
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