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What is a wedge pattern in forex?

Let’s dive in. What is a Wedge in Forex? (Quick Overview) Wedge patterns in forex are chart patterns that form when market activity converges in a range that slants up or down, depending on the wedge type. If you’ve read any of our previous postings on chart patterns, you’ll notice that they all have a bullish and bearish variant.

What is a rising wedge in forex trading?

When you encounter this formation, it signals that forex traders are still deciding where to take the pair next. A Falling Wedge is a bullish chart pattern that takes place in an upward trend, and the lines slope down. A Rising Wedge is a bearish chart pattern that’s found in a downward trend, and the lines slope up.

What does a falling wedge mean in forex?

It means that the magnitude of price movement within the Wedge pattern is decreasing. Wedges signal a pause in the current trend. When you encounter this formation, it signals that forex traders are still deciding where to take the pair next. A Falling Wedge is a bullish chart pattern that takes place in an upward trend, and the lines slope down.

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