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What does a falling wedge mean?

When this pattern is found in an uptrend, it is considered a bullish pattern, as the market range becomes narrower into the correction, indicating that the downward trend is losing strength and the resumption of the uptrend is in the making. In a falling wedge, both boundary lines slant down from left to right.

What is a wedge in trading?

What Is a Wedge? A wedge is a price pattern marked by converging trend lines on a price chart. The two trend lines are drawn to connect the respective highs and lows of a price series over the course of 10 to 50 periods.

What happens when prices move out of a falling wedge?

Once prices move out of the specific boundary lines of a falling wedge, they are more likely to move sideways and saucer-out before they resume the basic trend. The rising wedge pattern is characterized by a chart pattern which forms when the market makes higher highs and higher lows with a contracting range.

What is a descending wedge called?

The opposite symbol (∨) is called a vel, or sometimes a (descending) wedge. Some authors who call the descending wedge vel often call the ascending wedge ac (the corresponding Latin word for "and", also spelled "atque"), keeping their usage parallel

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