Wedge Chart Pattern
A wedge chart pattern is a technical analysis tool used to identify potential reversals in the price of a security. It is a chart pattern that is formed when two trend lines converge, forming a wedge shape. The wedge chart pattern is used to identify both bullish and bearish reversals in the price of a security. The pattern is formed when the price of a security moves in a converging pattern, forming a wedge shape. The wedge chart pattern is used to identify potential reversals in the price of a security.
History of the Wedge Chart Pattern
The wedge chart pattern was first identified by Charles Dow, the founder of Dow Theory. Dow Theory is a form of technical analysis that is based on the idea that the price of a security is determined by the supply and demand of the security. The wedge chart pattern is used to identify potential reversals in the price of a security. The pattern is formed when the price of a security moves in a converging pattern, forming a wedge shape. The wedge chart pattern is used to identify potential reversals in the price of a security.
Comparison Table
| Pattern | Bullish Reversal | Bearish Reversal |
|---|---|---|
| Wedge Chart Pattern | Price moves up | Price moves down |
Summary
The wedge chart pattern is a technical analysis tool used to identify potential reversals in the price of a security. It is a chart pattern that is formed when two trend lines converge, forming a wedge shape. The wedge chart pattern is used to identify both bullish and bearish reversals in the price of a security. For more information about this term, you can visit Investopedia, Investing.com, and other financial websites.
See Also
- Head and Shoulders Pattern
- Double Top Pattern
- Double Bottom Pattern
- Triple Top Pattern
- Triple Bottom Pattern
- Cup and Handle Pattern
- Flag Pattern
- Pennant Pattern
- Rising Wedge Pattern
- Falling Wedge Pattern
