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Wedge

The "Wedge" pattern is a powerful technical analysis algorithm that traders often use. It occurs when the line drawn with the apex and the line drawn with the trough continue in the same direction, narrowing. Price movements move between this narrow channel. Before these two lines converge, price movements are expected to break the channel.
Falling Wedge
In this pattern; each high and low is formed below the previous high and low. While the prices move in wider ranges at the beginning of the wedge formation, this gap decreases towards the completion of the formation and it is observed that the prices are squeezed and contracted. In this contraction, sellers and volume decrease. It is expected that the prices will break out of the formation and rise by breaking the upper line of the wedge. For investors, this is considered a buy signal. While determining the price target of the descending wedge formation, the height of the wedge is measured. The price is expected to increase by the height of the wedge formed.
Rising Wedge
Rising Wedge formation moves with the opposite logic of Falling Wedge formation. In this structure; each high and low is formed above the previous high and low. While the prices move in narrower ranges at the beginning of the wedge formation, this gap widens towards the completion of the formation and it is observed that the prices move in wider ranges. In this expansion, purchases and volume decrease. Prices are expected to break out of the formation and fall by breaking the lower line of the wedge. For traders, this is considered a sell signal. While determining the price target of the ascending wedge formation, the height of the wedge is measured. It is expected that the price will decrease by the height of the wedge formed.
​In order to easily obtain Wedge detections, you can create Alerts or Custom Signals through the Coinlegs system, and start autotrading bots on LegsBot by using the alerts you create.
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