What is a Wedge Pattern?
Definition of Wedge Pattern: This pattern is familiar with the chart formation that shows a narrow cost range over time. Generally, the wedges are viewed as the exchange pattern in which the currency cost reverses itself after the confirmation of the pattern. Wedges can be ascending as well as descending. Cost highs in the ascending wedge are less or in the descending wedge, decline in the cost is smaller. The ascending wedges result in the breakout and the descending wedges terminate with the upper breakouts. On the other hand, the reversal tendency generally ties back the existing formation of the trend. If the existing trend was up and wedge is moving downward, generally, a repetition takes place.