Enter your E-mail Address

Enter your First Name (optional)

Then

Don't worry -- your e-mail address is totally secure.
I promise to use it only to send you STOCKS-SIMPLIFIED.com.

Home
Stocks Simplified Blog
What are Stocks?
Fundamental Analysis
Technical Analysis
Portfolio Management
Options
Spreads
Bonus
Key Phrases
Brokers
Contact Us
Free Newsletter
Chart Patterns
Other Money Sites
Recommended products
Recommended e-books
Link to us
Stock Splits
Site map
Why invest in stocks
Stock Trend
YOUR success
Stock chart settings
Oscillators
Different trading types
Bad trades
candlestick patterns

What is a bearish wedge?

A bearish wedge can either be a continuation pattern or a reversal pattern. This depends on which direction the market was going before the pattern happened.

During this time a stock will bounce between 2 upward moving lines. Finally it will breakout to the downside. This downward breakout is considered to be the sell signal.

In this example this bearish wedge is a continuation pattern. It started rising up, making a very short term bullish trend. Finally it broke support.



To be considered a valid breakout the stock should have at least 5 bounces off of support and resistance before it actually breaks out.

trading the pattern Professional traders sould wait for it to break its support level. Once it does they may consider doing a short, or another bearish strategy with a stop above its old support.




Social Bookmarks


Search Engine Optimization


footer for Bearish wedge page