Technical Analysis Guide

Continuation Chart Patterns - Wedge

The wedge is a small triangle inclined against the trend:

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Typically, like the flag, both the pattern's upper and lower edges are either going up (bearish formation) or down (bullish formation). Breakout tends to happen between two thirds and one half of the way through the pattern. The chance of a reversal are great if the pattern inclines along with the trend.

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