Hello, my dear friends! As I promised, today we are talking about Wedges Patterns!
Link on a good view๐๐ป
Wedges are some of the main classical figures in technical analysis . There are two types of wedges:
- Rising Wedge pattern - both sides of the figure are directed up; - Falling Wedge pattern - both sides of the figure are directed down.
โA rising wedge pattern is formed when price increases slow and a tapering pattern forms. Price can't go longer rise further, but at the same time, as if they continue to gradually update local highs. That's suggests, that the pressure of sellers (bears) is gradually increasing in the market.
โA downward wedge pattern is formed when price decline slows down and a tapering pattern is formed, and volume indicators gradually decrease. Prices are no longer able to decline further, but at the same time, as if they continue to gradually update local lows. That's suggests, that the pressure of buyers (bulls) is gradually increasing in the market.
๐กMy picture shows, that the โWedgeโ directed ๐๐ป down is a bullish ๐ model, since the trend is up and the price has broken the resistance line (went up).
And the โWedgeโ directed up โ๐ปis a bearish ๐ป model, as the trend is directed down and the price has broken through the support line (went down).
These signals are strong and YOU can trade on them.
๐ฃBut if the price in both cases would go in the opposite direction (the opposite direction to the trend), then this would be a weak signal. Trading in this case is not recommended, as it's too risky. ๐ ๐ปโโ๏ธ
Guys, thanks for reading me!๐๐ป Subscribe and stay with me forever๐งก I'm appreciate Your support๐ฅฐ Your Rocket Bomb๐๐ฃ
PS : ๐๐ป๐๐ป๐๐ปBelow I put links on my previous ideas ๐๐ป๐๐ป๐๐ป