Hello, traders.
What Is a Wedge?
A wedge is a price pattern marked by converging trend lines on a price chart—the two trend lines drawn to connect the respective highs and lows of a price series.
A wedge pattern can signal either bullish or bearish price reversals.
Therefore, rising wedge patterns indicate the more likely potential of falling prices after a breakout of the lower trend line. Traders can make bearish trades after the breakout by selling the security short or using derivatives such as futures or options, depending on the security being charted. These trades would seek to profit on the potential that prices will fall.
Best regards.
Sandro and Gustavo.
What Is a Wedge?
A wedge is a price pattern marked by converging trend lines on a price chart—the two trend lines drawn to connect the respective highs and lows of a price series.
A wedge pattern can signal either bullish or bearish price reversals.
Therefore, rising wedge patterns indicate the more likely potential of falling prices after a breakout of the lower trend line. Traders can make bearish trades after the breakout by selling the security short or using derivatives such as futures or options, depending on the security being charted. These trades would seek to profit on the potential that prices will fall.
Best regards.
Sandro and Gustavo.