Home
Afrika Ltd
Source:
www.live.mystocks.co.ke/stock=HAFR
Sat, 12 Apr 2014
12:43:19 +0300
A
Falling Wedge looks like an elongated triangle that slopes downwards with the
price spiralling lower between two converging trendlines. It is usually found
in uptrends as a continuation pattern that slopes agains the prevailing trend.
Sometimes, the falling wedge may materialize at the end of a prolonged
downtrend where it can act as a reversal pattern. Volume decreases during the
formation of the wedge and should expand on the breakout.
Profit Target - can be measured by adding the width at the top of the pattern to the point of breakout.
Example – On the weekly chart of Home Africa
Trading Tip - A Falling Wedge may be traded as a reversal pattern but leads to much better trades as a continuation pattern that forms on a decrease in volume in well established uptrends where it can mark the halfway point of a major move.
Profit Target - can be measured by adding the width at the top of the pattern to the point of breakout.
Example – On the weekly chart of Home Africa
Trading Tip - A Falling Wedge may be traded as a reversal pattern but leads to much better trades as a continuation pattern that forms on a decrease in volume in well established uptrends where it can mark the halfway point of a major move.
No comments:
Post a Comment