What is the stock pattern called wedges?
Wedges is a stock pattern that looks like the triangle pattern with a support line and a resistance line that gradually comes closer together. We have two sorts of wedges, the rising wedge and the descending wedge.
The rising wedge is first of all a negative signal and a signal that tells you to go short or sell your stocks if you are long. The rising wedge is characterized for uptrending resistance and support levels that slopes up and then drops after the meeting point.
The descending wedge is characterized by its downtrending resistance and support levels that slopes up and then rises after the meeting point. The break out in a descending wedge is a good point for going long or quit your position if you are short.