In this section, we are going to learn about Rising Wedge, Head-and-shoulder, and Incverse Head-and-Shoulder patterns.
Rising Wedge Pattern
The rising wedge is a pattern on a chart that might mean the trend is about to change. It looks like two lines coming together with the price going up in between them. Usually, the trading volume gets lower as this happens. When the price breaks below the lower line it confirms that the price might start going down.
Failing Wedge Pattern
The falling wedge pattern is a shape on a chart that happens when the market keeps going down, making lower lows and lower highs, but within a smaller range each time. If this happens during a period of falling prices, it suggests a possible turnaround. We confirm the breakout when the price breaks above a certain line and starts going up.
