Mind the Wedgies

Wedges are characterized by a contracting range in prices coupled with a trend – upward is a “rising wedge” while downward is a falling wedge.

Wedges are transitive – they form near the top or bottom of a trend and often resolve within ~4 weeks.

In the case of an upward trend, resolution can trigger a breakout towards every price points.

Or a correction in the case where the new top is not sustainable.

Which means it might be a good idea watching things.

If you’re interested in the range of wedges converging out there, check out Tim Knight of Slope of Hope: https://slopeofhope.com/2021/02/watch-those-wedges.html

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