Jump to content
Sign in to follow this  

wedge and technical analysis

Recommended Posts

Guest phil

whats it called when the wedge looks like it's ascending, but the top is horizontal? is it bearish or bullish? Like this?

2018-10-26-08-56-21-IG-Trading-Platform-

Share this post


Link to post

Hi phill, if the top line is horizontal and the bottom line is ascending then it is an ascending triangle and repeated attacks on the horizontal resistance level will reduce the number of sellers at that level to breaking point, so the theory goes. It doesn't always work out that way and that is not a particularly good example as it's too drawn out which suggests the sellers are strong while the buyers are struggling to lift price back up each time. 

For triangles; https://www.babypips.com/learn/forex/triangles

For wedges; https://www.babypips.com/learn/forex/wedges 

  • Thanks 1

Share this post


Link to post

Also a good rule of thumb is that for a Triangle to be valid it should be broken no later than 2/3 of the way along the length, otherwise it becomes an unreliable set up.  The longer term the chart the more reliable the Triangle (i.e. Daily chart is much stronger than 1 hour chart, true of most technical analysis actually).

Share this post


Link to post

Interesting. I thought higher highs meant it was going to try and breakout to the upside? But Casey it sounds like your saying this is a bearish signal? 

Share this post


Link to post

Correct, repeated attacks on the horizontal level will usually over-run all the orders waiting there but I don't see this as a triangle, the structure is poor and the attacks on the horizontal are weak and beaten down with strength. There is probably a stronger case for drawing another horizontal at the grey line on the 3 equal lows. 

Share this post


Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Member Statistics

    • Total Topics
      6,560
    • Total Posts
      29,450
    • Total Members
      38,978
    Newest Member
    abdlhadi1395
    Joined 19/04/19 17:04
  • Posts

  • Our picks

    • Could the price of pork increase by 78% in China by 2020? - EMEA Brief 18 Apr
      The African swine fever disease has reached Southeast Asia and parts of Europe, including the world’s biggest producer of Pork, China. A prediction from the Japanese bank Nomura, is that this could cause prices to rise by 78% in China by 2020, to 33 yuan per kilogram from 18.5 yuan

      Global PMIs come into focus today, with eurozone and US figures released in the wake of a poorer Japanese number this morning. Pinterest has priced its IPO at $19 per share, above the previously indicated range but still lower than in private funding rounds two years ago.
      • 1 reply
×
×