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Wedge Patterns: Bullish & Bearish Insights

Chart pattern psychology

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0% found this document useful (0 votes)
23 views5 pages

Wedge Patterns: Bullish & Bearish Insights

Chart pattern psychology

Uploaded by

khansallu8623
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

📈

Falling wedge rising wedge

1. FALLING WEDGE PATTERN – (Bullish Bias)


A. Technical View:
1. Price lower highs aur lower lows bana raha hota hai.

2. Lekin dono trendlines (support & resistance) ek dusre ke kareeb aati hain
(converging

Falling wedge rising wedge 1


3. Volume gradually kam hota hai.

4. Jab breakout hota hai, usually upside me hota hai.

5. Timeframe: 15m to 1D (Higher = more powerful)

Key Signal.

Price squeezes in tight range.


Breakout upar ki taraf aata hai.
Volume spike on breakout confirms move

B. Psychological View:
Market me sellers dominate kar rahe hote hain, lekin har naya low weak hota ja
raha hai.

Buyers quietly position build kar rahe hote hain (smart money).

Fear ka peak hota hai, but smart money knows sellers are exhausting.

Jab price wedge ke end me pohchta hai, to buyers aggressive ho jaate hain –
breakout hota hai.

C. Fundamental Theory:
Falling wedge aksar kisi temporary bearish phase ya correction me banta hai,
lekin fundamentally asset strong hota hai.

Example: Company ke result ache hain, lekin market sentiment kharab hai —
to price temporarily girta hai.

Jaise hi fundamentals ya market mood support deta hai — breakout hota hai.

D. Science/Math Behind It:


Volatility Compression:

Wedge me volatility gradually compress hoti hai.

Falling wedge rising wedge 2


Ye batata hai ki energy store ho rahi hai breakout ke liye.

Breakout Energy = Stored Pressure + Volume

Jaise coil compress hota hai, waise hi wedge breakout me explosive move deta
hai.

Chapter 2

Rising

2. RISING WEDGE PATTERN – (Bearish Bias)


A. Technical View:
Structure:

Price higher highs aur higher lows bana raha hota hai.

Dono trendlines upar slope karti hain aur converge karti hain.

Volume gradually decrease hota hai.

Breakdown usually niche ki taraf hota hai.

Falling wedge rising wedge 3


Key Signal:
Weak buying, shrinking volume, and rising price = caution.

Breakdown confirms short setup.

B. Psychological View:
Market me buyers zyada optimistic dikhte hain, par confidence fake hota hai.

Har new high weak hota ja raha hota hai.

Smart money quietly exit kar raha hota hai.

Jab support break hota hai, to panic selling start ho jati hai — breakdown hota
hai.

C. Fundamental Theory:
Rising wedge aksar overhype ya temporary rally ke baad banta hai.

Kahi baar bad news ignore ki ja rahi hoti hai — price upar ja raha hota hai
without volume support.

Example: Earnings kharab aane wale hain, par price rally kar raha hai — smart
money jaanta hai aur quietly nikalta hai.

D. Science/Math Behind It:


Weak Momentum + High Price = Instability

Price action tight hoti hai, lekin upar ja rahi hoti hai without real demand.

Breakdown hota hai jab support line break karti hai, aur volume suddenly spike
karta hai — momentum shift hota hai.

Professional Use Strategy:


Falling Wedge (Bullish):

Buy at breakout above resistance.


Volume spike confirmation

Falling wedge rising wedge 4


SL: Last swing low

TP: Measure wedge height and project it upwards

Rising Wedge (Bearish):

Short at breakdown below support.


Volume spike needed

SL: Last swing high

TP: Wedge height projected downward

Falling wedge rising wedge 5

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