It is known as Ascending broadening wedge. Symmetrical broadening formations have a price pattern that circles a horizontal price axis. When the axis rises, the ascending broadening wedge varies from an Ascending broadening wedge. The upper trend line of an Ascending broadening wedge moves upward at a higher rate than the lower one.
What is a wedge pattern?
Wedge patterns are usually characterized by converging trend lines over 10 to 50 trading periods. The patterns may be considered rising or falling wedges depending on their direction. These patterns have an unusually good track record for forecasting price reversals. A wedge pattern can signal either bullish or bearish price reversals.
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 is a rising wedge?
A rising wedge is often considered a bearish chart pattern that points to a reversal after a bull trend. A rising wedge is believed to signal an imminent breakout to the downside. Like other wedges, the pattern begins wide towards the bottom and contracts as the price moves higher and the trading range narrows.
