The low's can sometimes be rounded or drawn out a bit. Usually after the first peak there is a decline anywhere from 5-20% with lower volume marking the first trough. The first peak should mark the highest point of the current uptrend.
#Rising wedge bullish breakout how to
How to trade the pattern: For a full double top you'll need to have two peaks, usually within the same resistance.
Second peak usually low volume Risks: False breakdowns. Can be used on daily time frame Volume: During the first trough should have lower volume. Success rate: 75% Time-frame/Duration: 3 to 6 months. There has to be a prior uptrend for this to be an accurate reverse pattern. The pattern involves two peaks then one trough. Type of pattern: The Double Top Reversal is a bearish pattern occurring after an uptrend. (the chart below will help you understand more) The extension of this line will mark a potential breakout target. Second, a trend line can be drawn parallel to the pattern's trend line that slopes (up or down) in the direction of the break. First, the widest distance of the symmetrical triangle can be measured and applied to the breakout point. Price target: There are two methods to estimate the extent of the move after the breakout. Lastly you want to buy right after it breaks resistance or support of candles that were in the wedge. You want to then see a secondary candle take support over or under the trendline to know the wedge has been broken. First conformation is a breakout through trendline, or break down through trendline. How to trade the pattern: To trade a symmetrical triangle properly you want to wait for 2 conformations. Risks: False breakouts on low volume, minimize risk by waiting for conformation. This refers to the quiet before the storm, or the tightening consolidation before the breakout. Volume: As the symmetrical triangle extends and the trading range contracts, volume should start to diminish. Typically, the time duration is about 3 months. If the pattern is less than 3 weeks, it is usually considered a pennant.
To get a greater accuracy wait for it to break down or above the trend lines for a conformation Time-frame/Duration: The symmetrical triangle can extend for a few weeks or many months. Success rate: A symmetrical triangle has a success rate of 75%. The pattern is also known as a wedge chart pattern. A breakdown from the lower trendline marks the start of a new bearish trend, while a breakout from the upper trendline indicates the start of a new bullish trend. Type of pattern: A symmetrical triangle chart pattern represents a period of consolidation before the price is forced to breakout or breakdown.
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