![]() ![]() With the progression of prices, volumes traded show a decline in numbers. It notifies the restoration of the uptrend, which gives rise to possible buying opportunities.This forms a bullish pattern, and it can be generated in any market condition.A minimum of two lows are required to draw the lower support trend line.Depending on whether the lines are sloping upwards or downwards, it’s called a rising or falling wedge.This pattern can be drawn by using trend lines and connecting the peaks and the troughs.As one can see, February 26, 2019, has been the beginning of the uptrend for the next few days. A long bullish candle along with high traded volumes has broken out from the top trend line of the pattern on February 26, 2019. When lower highs and decrease lows type, as in a falling wedge, a safety remains in a downtrend. Traders using a falling wedge pattern should buy as soon as the prices break above the upper converging trend line with a stop loss at the bottom of the falling wedge. The falling wedge pattern is considered to be one of the most difficult charts to identify and take action from for technical analysts and traders. It is suggested to cover positions while trading with triangle charts as the breakout can occur in any direction. Essentially in wedge patterns, the breakout direction is predictable but it is difficult to know the breakout direction in the case of a triangle pattern. Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Similarly, a rising wedge that forms within a downtrend is considered bullish, while a rising wedge that forms within an uptrend is considered bearish. That much distance should be extended on the chart after the breakout of the top trend line. Stop-loss should be fixed at the bottom price of the lower trend line. ![]() Now, the broker resistance can be referred to as the support on the chart. A trade should be initiated after the retest of the top trend line. Nabors Industries: Back To Earth (NYSE:NBR).Īccording to strategy 2, one should wait for the price to trade above the resistance. Nabors Industries: Back To Earth (NYSE:NBR) – Seeking Alpha ![]()
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