Investor Education: Stock Chart Wedge Pattern
By Tue, Jan 7, 2020
Learning stock chart patterns leads to increased profits. Investors and stock traders who expand their knowledge will continue to expand their bank accounts. In today’s investor education piece, we will go over a stock chart wedge pattern (triangle pattern). The wedge pattern alerts investors to consolidation in price. In other words, price action is being digested before the next big move. Will the major move big up or down? That is determined by whether price breaks up or down out of the wedge pattern.
Wedge patterns only form when you can clearly connect all the recent major highs and all the recent major lows. It creates a wedge or triangle pattern. This means price has to be making lower highs and higher lows. This is important because an investor must draw straight lines creating the wedge. The reason for the straight lines is to give a basis to the investor or stock trader of a definite breakout/breakdown point.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
About the Author
Chief Market Strategist Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial adviser but his heart was always in swing and day trading. He had this long standing belief that he could help investors make more money by advising them on shorter term investments (holding a stock for days to weeks) than the buy and hold crowd who lost 50% of their money during every market collapse. “Why not profit during the bear markets just like the bull markets”, he said. While helping others gain financial independence during the day, he spent his nights studying charts and price action, developing a unique market trading system that put his profits on a rocket ship. Some nights he would barely sleep when he found a new technique that was proven, once back-tested.
