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What is a wedge pattern?

On the technical analysis chart, a wedge pattern is a market trend commonly found in traded assets ( stocks, bonds, futures, etc.). The pattern is characterized by a contracting range in prices coupled with an upward trend in prices (known as a rising wedge) or a downward trend in prices (known as a falling wedge).

What is a wedge pattern in forex trading?

The Wedge pattern is an effective trading signal for Forex traders around the world. Join me in this article to learn about this special chart pattern. 1 What is the Wedge pattern? Characteristics and how to identify What is the Wedge pattern? Characteristics and how to identify Wedge is a popular chart pattern in Forex trading.

What is the difference between rising and falling wedge patterns?

Rising wedge patterns form when the support line is rising faster than the resistance line, while falling wedge patterns form when the support line is falling faster than the resistance line. When a wedge breaks out, it is typically in the opposite direction of the wedge – marking a reversal of the prior trend.

How long does a wedge pattern last?

The strongest wedge patterns develop over a three- to six-month period and are preceded by a strong trend that is at least several months long. However, it is also possible that the trend is contained partially or entirely within the wedge pattern itself.

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