Ascending triangle vs ascending wedge3/18/2024 ![]() ![]() ![]() The rising and falling wedges help us in predicting the reversals of the trends that help the traders in making appropriate trading decisions. The formation of any triangle is a direction. The first is rising wedges where price is contained by 2 ascending trend lines that converge because the lower trend line is steeper than the upper trend line. The profit target is set by measuring the height of the back of the wedge and extending that distance up from the trend line breakout. The Wedge pattern can either be a continuation pattern or a reversal pattern, depending on the type of wedge and the preceding trend. Descending Triangle: A bearish chart pattern used in technical analysis that is created by drawing one trendline that connects a series of lower highs and a second trendline that has historically. The stop loss is usually placed below the back of the wedge. In order to form a descending wedge, both the support and resistance lines have to point downwards and the resistance line should be steeper than the line of support.īelow is an example of Falling Wedge formed in daily chart of BSE Sensex:īelow is an example of Rising Wedge formed in weekly chart of Sundaram Finance ltd.: The patterns are easy to spot, but false breakouts are more probable. The resistance line is the key difference between these two patterns. The falling wedge chart pattern formed when a market consolidates between two converging trend lines i.e. The rising wedge is a reversal pattern, while the ascending triangle is mostly a continuation pattern. In order to form a rising wedge, both the support and resistance lines have to point upwards and the support line should be steeper than resistance. Ascending Triangle Pattern and Descending Triangle pattern is the best representation of who holds the strength in the market. The rising wedge chart pattern is formed when a market consolidates between two converging trend lines i.e. Once there is price breakout, there is a sharp movement of prices in either of the directions. ![]() This pattern can be drawn by using trend lines and connecting the peaks and the troughs. Rising wedge occurs when the price of the stock is rising over a time whereas falling wedge occurs when the price of the stock is falling over a time. The price action forms a cone that slopes down or up as the reaction highs and reaction lows converge. It can be in the form of a rising wedge or a falling wedge. Wedges are bullish and bearish reversal as well as continuation patterns which are formed by joining two trend lines which converge. Next, we will learn a completely different type of chart pattern called Wedges. ![]()
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