Category: Money tips Release Date: 2006-06-18
Wedge shape that is a triangle belonging to slash short-term adjustments in shape, its causes for the price there is a rapid pre-market, stock price volatility, and will almost perpendicular angle to form a flagpole, multi-or air-side after a sprint, the stock price in the short term was pulled back slightly inside the reverse, while the formation of wedge-shaped. Divided into wedge-shaped wedge-shaped rising and falling wedge.
Following a rise in wedge-shaped means the stock has a strong technical rebound after falling, the price rose to a certain level of the whereabouts of another U-turn, but turn down the previous high point, but also rose to a new high points than the previous rally high, and then down to form a wave a wave of the trend, linked to high short-term and short-term low-linked to form an upward-sloping straight line, the following one is more steep. Wedge-shaped decrease in contrast, a high point of a more than a low, low is also lower than the one formed under the same time, two slash dumping.
Wedge-shaped patterns in trading volume is decreasing from left to right, but it is not like the flag of the volume to maintain a certain level, but the shrinking rapidly, its shape within the volatility range, but also smaller than the flag-shaped more. Similarly, the wedge-shaped finishing time not too long, generally 8 to 15 days, too long, then, form strength will disappear, but also may result in the pattern of price reversal. In practice, the graph can have a variety of wedge-shaped deformation, increase in the way of the ascending, descending wedge-shaped, down the way of the rise and fall of four wedge-shaped and so on. The general experience is that "up wedge bearish, bullish wedge down", that is wedge-shaped with a reversal of the signal function, and often formed in the bottom or top of the medium-term, but often continue to exist in the form of trends in the middle of the face, ie flag , convergence such as triangle or pennant is similar to the measurement range should refer to the previous range of motion.
Can be said that the emergence of a wedge-shaped reverse Quotes not the end of the performance, this pattern shows that stock prices take a break, multi-or air-side temporarily adjusted in order to continue to have the power to the role of the movement towards a certain direction. At the same time, they also played a role in adjusting the angle. In general, stock prices, whether up or down, the trend of 45-degree angle as the base line, when the stock price is too steep angle, or deviation from 45 degrees, the stock will produce 45-degree amendment to the inertia, so stock price will make use of wedge-shaped, or flag-shaped horizontally amended so as to supply the follow-up attacks on multi-or air-side energy.
However, there are exceptions, such as Chongqing Changan Automobile After a short rise 25% after, from March 20 to April 3 forming a rising wedge and eventually break up. Well, this increase is a rise in wedge-shaped form of relay, but did not form reversal.
