The Wedge pattern can either be a continuation pattern or a reversal pattern, depending on the type of wedge and the preceding trend. There are 2 types of wedges indicating price is in consolidation. 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. In other words: the lows are climbing faster than the highs. These wedges tend to break downwards. The second is Falling wedges where price is contained by 2 descending trend lines that converge because the upper trend line is steeper than the lower trend line. In other words: the highs are falling faster than the lows. These wedges tend to break upwards.
Conservative traders may look for additional confirmation of price continuing in the direction of the breakout. The target can be estimated through the technique of measuring the height of the back of the wedge and extending it in the direction of the breakout. A common stop level is just outside the wedge on the opposite side of the breakout.
As mentioned in the chart, looking at the level at which Banknifty currently is, there is at long term trendline resistance,a rising wedge which seems to have come to an end and a possible Head and Shoulders pattern in the making.
Would look for shorting opportunities here with a stop few points above 27900 for a target around 26400 and 25600 ...
TVS motor has presented us a very juicy shorting opportunity. On weekly, it has broken a wedge formation. On daily a flag formation has been broken. SO pressure is on the downside. As the broader market is also plummeting, there is a high probability of TVS motors to reach its target and beyond.
Stock selected as the overall NIFTYIT looks bearish on daily time frame.
The stock is forming a lowering wedge pattern.
IF lower trend line is broken
Then Stock will move towards target
Stock has formed the Classical Descending Triangle within a Falling Wedge. It has given breakout today with gap. ALthough it made a black candle but still this breakout is valid and gives the opportunity to enter cheap. Those interested in pattern trading could use the setup for the target of 227.50/243.
Disclaimer : All ideas are my personnel view. Please take ...
MGL sell Below 834.60
Stoploss - 855
Target - 756
Risk - 2.42% & Reward 9.42%
RR Ratio 1 : 3.90
Reversal or Continuation Pattern
Rising Wedge
Prices are moving upward, forming higher highs and higher lows, but the price is confined within two lines which get closer together to create a pattern. This indicates a slowing of momentum and it usually precedes a ...
right time to buy if btc is stable 5th elliott wave is completed and formed falling wedge if price make higher low it would be great to buy this one rsi and stochastic rsi showing oversold and there is loss of volume too bears are in control if you don't want to buy now then buy after it breaks the target of falling wedge is 60% it will take max 10-15 days to hit ...
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