![]() Longer trends will often create designs other than a wedge or a flag. A typical wedge or flag lasts longer than one month but less than three months. ![]() Since the data creating the design is typically slanted against the current trend, a descending flag is considered a “bullish” indicator, while a wedge is viewed as a “bearish” predictor. A bullish signal occurs when prices break above the upper trendline. This is because prices edge steadily lower in a converging pattern i.e. Just like a normal wedge, analysts converge price. Therefore, the rising wedge pattern is a bullish chart pattern, which arises near the end of an upward trend, and the lines incline down. Unlike the Triangles where the apex is pointed to the right, the apex of this pattern is slanted downwards at an angle. A wedge is a method of charting that analysts employ when depicting major price movements in the market. A bearish signal occurs when prices break below the lower trendline.Ī Bullish Wedge or Flag consists of two converging trend lines. This is because prices edge steadily higher in a converging pattern i.e. ![]() Unlike the Triangles where the apex is pointed to the right, the apex of this pattern is slanted upwards at an angle. The “falling wedge” is often called a “flag” since it more resembles a pointed flag more than a typical triangle.Ī Bearish Wedge, or Flag, consists of two converging trend lines. The broadening wedge is a bilateral chart pattern that you can use to spot potential breakouts (if the market is trending) and short-term trend reversals. The wedge need not be upward facing and can easily be an inverted triangle. A wedge in the financial universe describes a triangular shape formed by the intersection of two trendlines, which form the apex.
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