Wedge
The Wedge figure formed in the direction of a trend is one of the most significant reversal patterns. Its formation period lasts from some weeks up to some months.
There are Wedges of two types:
- Falling
- Rising
- Rising Wedge figure is the upward market fluctuations limited by support and resistance levels. The breakage occurs to the opposite for the market direction side.
- Falling Wedge is the downward market fluctuations limited by support and resistance levels. The breakage usually occurs upward.
A Wedge usually does not determine the prices but the market often seeks to the beginning of a figure.
