A Falling wedge can be a reversal pattern at the bottom, but can also fit into the continuation category. As a continuation pattern, the falling wedge will still slope down, but the slope will be against the prevailing uptrend. As a reversal pattern, the falling wedge slopes down and with the prevailing trend. Regardless of the type (reversal or continuation), falling wedges are regarded as bullish patterns.
Monthly candle is a doji/weekly indicates SWKS may fall a bit more. SWKS broke out from a Cup and Handle pattern a while back. Has been in a rising wedge pattern for a long, long time. Rising wedges can be long term patterns but are usually bearish. SWKS has broken bottom trend line of rising wedge, but could possible fall further. A strong stock averages 35% fall from this pattern.
As a continuation pattern in a downtrend, the rising wedge will still slope up, but the slope will be against the prevailing downtrend, similar to a bear flag. A rising wedge is over 3 weeks in formation or it is a pennant/flag. As a reversal pattern, the rising wedge will slope up and with the prevailing trend. Regardless of the type (reversal or continuation), rising wedges are bearish.
A stock may break up from a rising wedge pattern. The break out is often weak and short lived though
Nuetral until this one gives a clear sense of direction or breaks up from falling wedge in a clear uptrend.
Monthly candle is a doji/weekly indicates SWKS may fall a bit more. SWKS broke out from a Cup and Handle pattern a while back. Has been in a rising wedge pattern for a long, long time. Rising wedges can be long term patterns but are usually bearish. SWKS has broken bottom trend line of rising wedge, but could possible fall further. A strong stock averages 35% fall from this pattern.
As a continuation pattern in a downtrend, the rising wedge will still slope up, but the slope will be against the prevailing downtrend, similar to a bear flag. A rising wedge is over 3 weeks in formation or it is a pennant/flag. As a reversal pattern, the rising wedge will slope up and with the prevailing trend. Regardless of the type (reversal or continuation), rising wedges are bearish.
A stock may break up from a rising wedge pattern. The break out is often weak and short lived though
Nuetral until this one gives a clear sense of direction or breaks up from falling wedge in a clear uptrend.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.