![]() ![]() The falling wedge develops when the price of an asset declines, however, the range of price movements begins to narrow. It indicates a trend continuation during an established uptrend or a bullish reversal after a downward trend. The falling wedge pattern, also known as the descending wedge pattern, is a bullish formation that can appear in both trend continuation and trend reversal situations. ![]() This article explains the falling wedge pattern in detail as well as the technical approach to trading this pattern. Falling wedges occur in an uptrend and indicate a bullish reversal.ĭepending upon where they are found on a price chart, wedges can be interpreted either as a reversal or continuation pattern and can help traders find trading opportunities. If you see this pattern, it means that traders are still debating where to take the pair next.Ī rising wedge is found in a downtrend and signifies a bearish reversal. ![]() Wedges represent a break in the current trend. It denotes that the size of the price movement within the wedge pattern is reducing. How to Trade Falling Wedge Chart Patterns?Ī wedge chart pattern is formed when two trend lines converge.Rising and Falling Wedge Patterns – Differences.As always, IT’S YOUR TAKE, IT’S YOUR CALL. Please trade with CAUTION, please trade with CARE. The Chart and Analysis is presented for educational purposes only and should NEVER BE TAKEN as a RECOMMENDATION to BUY, HOLD, or SELL. Starting September 1, 2015, since you are already familiar with our caption “TA – The Responsible Trader’s Way – No Hyping, No Bashing, Just Plain Cold Facts” we are changing this to TA – TRT Way – Straight from the Chart. It was at the same time this year that we introduced Responsible Trading to mainstream social media. September is a very significant month for us. In case you decide to take this trade, always remember to set a stop loss based on your established risk tolerance level.ģ. On the opposite side of Pattern Targets are Pattern Failures. Negative points are things that you have to watch out for.Ģ. ![]() Positive points are things that could work in your favor. As early as January this year 2015, the stock’s price action has been below 200 SMA indicating that the stock is in Deep Bear territory.ġ. Price action below 200 SMA – Stock in Bear territory. Price action below 50 SMA shows that the stock is Bearish on the Medium TermĤ. Price action below 50 SMA – Bearish – Medium Term. Price action below 15 EMA and 20 SMA shows that the stock is Bearish on the Short Term.ģ. Price action below 15 EMA and 20 SMA – Bearish – Short Term. It needs to at least go back to P55.00 to stay in the game.Ģ. This must have precipitated further selloff of the stock. Falling Wedge Breakdown, After completing a Falling Wedge Pattern, a supposed to be Bullish Reversal Pattern, SMC instead of breaking out had a breakdown. Based on technicals, we do not see anything positive going for SMC at this point in time.ġ. This is the first of our THREE for FREE for this weekġ. In accordance with our Independence Day commitment, following is our Technical Analysis of SMC (SAN MIGUEL CORPORATION) as of Sept. ![]()
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