Trading Reference Links
Chip Anderson wrote:
> Hi Harley,
> A rising wedge is a triangle pattern formed when an up-trendline
> (drawn by connecting successive bottoms) intersects (or appears like
> it will intersect) a trendline connecting successive tops and the
> intersection point is higher than the triangle's midpoint. Rising
> wedges are traditionally interpreted as a "continuation pattern"
> meaning that prices should continue higher at or just before the
> trendlines meet.
I´m sorry Chip but a rising wedge is a BEARISH continuation pattern and
thus indicates a continuation of the trend lower after a bearish
breakout of the pattern. An upside breakout out of a rising wedge
pattern has no specific meaning. The big difference between a wedge and
triangle patterns is that in a wedge pattern the support and resistance
lines have the same slope (in a rising wedge that is a positive slope).
Julius de Kempenaer