Forex Chart Patterns – Wedges Chart Patterns
Posted on 26. Jul, 2007 by admin in Forex Chart Patterns
The formation of wedges can signal breakouts in upward or downward trending markets. They are similar to triangles in terms of their application. The Wedge formation is a variation on the ascending or descending triangle in which both the angled sides of the triangle are sloping against the dominant trend in the market. The wedge formation is used in the same manner as the triangle formations discussed in the previous articles. It shows consolidation of the market in either an up or down trend, and once the support or resistance provided by the wedge is broken, it most often signals a continuation of the trend in its original direction.
