![]() ![]() 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. Longer trends will often create designs other than a wedge or a flag. A bullish signal occurs when prices break above the upper trendline. 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. Unlike the Triangles where the apex is pointed to the right, the apex of this pattern is slanted downwards at an angle. A falling wedge pattern is seen as a bullish signal as it reflects that a sliding price is starting to lose momentum, and that buyers are starting to move in to. 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 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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