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Understanding Chart Patterns
Dan's 10 Golden Rules
Charting Programs
Recommended Reading
Useful Stock Resources
Glossary
11 Most Common Stock Chart Patterns
1.
Cup & Handle
2.
Flat Base
3.
Ascending Triangle
4.
Parabolic Curve
5.
Wedge Formation
6.
Channel Formation
7.
Symmetrical Triangle
8.
Descending Triangle
9.
Flags & Pennants
10.
Head & Shoulders
11.
Inverted Head & Shoulders

The Wedge Formation Pattern

The Wedge Formation is also similar to a symmetrical triangle in appearance, in that they have converging trend lines that come together at an apex. However, wedges are distinguished by a noticeable slant, either to the upside or to the downside. As with triangles, volume should diminish during its formation and increase on its resolve. The Following is a Typical Wedge Formation Trend Pattern

A falling wedge is generally considered bullish and is usually found in up-trends. But it can also be found in downtrends as well. The implication however is still generally bullish. This pattern is marked by a series of lower tops and lower bottoms.


A rising wedge is generally considered bearish and is usually found in downtrends. They can be found in up trends too, but would still generally be regarded as bearish. Rising wedges put in a series of higher tops and higher bottoms.

HERE IS A SAMPLE CHART WITH A WEDGE FORMATION PATTERN

 


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CHARTPATTERN.COM™ - Technical stock analyst and World Record Holder Dan Zanger™ shares profitable strategies for trading the stock market in the The Zanger Report™. The Zanger Report™ is a nightly newsletter that features breakouts, swing trading, breakout trading, technical stock chart analysis, stock tips, market research, hot stocks, and commented charts with highlighted chartpatterns. Dan Zanger™ shares additional real time strategy plays daily in his large chatrooms and archived daily comments.