Technical Talk: Ascending Wedge Chart Pattern
January 9th, 2010 | 
Author: - This is a rising and converging channel pattern. It looks like a triangle with the trend lines converging as both the upper and lower trend lines are ascending.
- The pattern has bearish implications as the lower trend line’s slope is steeper than the upper trend line and usually breaks down out of the channel bearishly.
- The pattern can be found in both bullish and bearish markets.
- When in a bullish market, the pattern is defined as a reversal pattern.
- When in a bearish market, the pattern is technically a continuation pattern.
- The pattern is putting in higher highs and lows but the highs are slower to develop as the lows are more dramatically higher.
- Volume is diminishing as the stock moves higher showing less conviction on the move.
- When the stock breaks the lower trend line it should be on increased volume.
Posted in Technical Talk
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