FALLING WEDGE PATTERN � Part 2: Important Characteristics

Go back to Part 1: Falling Wedge FormationImportant Characteristics of Falling Wedge PatternExisting Trend:There should be an established existing trend (either uptrend or downtrend). As mentioned before, Falling Wedge, which has a bullish bias, can be categorised as a reversal or continuation pattern.As a reversal pattern, Falling Wedge normally occurs after an established downtrend. The slope of Falling Wedge will be downward, which is in the same direction as the prevailing trend.As a continuation pattern, Falling Wedge occurs after following an uptrend. The slope of Falling Wedge will still be downward, but this slope will be against the prevailing uptrend.Shape of Falling Wedge:* There should be at least 4 reversal points to draw two converging lines, i.e. two successively lower peaks...

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FALLING WEDGE � Part 1: Formation

Falling Wedge is generally regarded as a bullish pattern. The breakout usually occurs upwards through the wedge and then move on into upward trend.Falling Wedge can be categorised as a reversal or continuation pattern.As a reversal pattern, Falling Wedge normally occurs after an established downtrend. The slope of Falling Wedge will be downward, which is in the same direction as the prevailing trend.As a continuation pattern, Falling Wedge occurs after following an uptrend. The slope of Falling Wedge will still be downward, but this slope will be against the prevailing uptrend.Regardless of whether it occurs as reversal or continuation pattern,...

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Market Analysis Video: Updates on Dow and Nasdaq Markets

Watch the following videos to see what�s happening in both of the markets:* Updates on Dow marketIf nothing else, watch this video as this could be one of the most important weeks for the DOW and its future. This 3-minute video will share both interesting and educational analysis from both a Fibonacci and Japanese candlestick point of view.The weekly chart on the DOW is flashing the same Japanese candlestick signal that it had earlier in April of this year. Back then the DOW dropped from 11,200 to 9,700 in the space of just 10 weeks!* Updates on Nasdaq marketThis video shows an eerily similar pattern in the NASDAQ. If the pattern repeats, then it certainly is going to be a rough 3rd and 4th quarter for most investors.The video would also give you exact points and the formation that could make...

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Market Analysis Video: Make or Break in the S&P Market

This new short video shows you one key element that could make or break the S&P 500 market.See how to interpret the trendline, Fibonacci, Moving Average Crossover, and Divergence analyses together.Other Learning Resources:* FREE Trading Educational Videos with Special Feature* FREE Trading Educational Videos: Learn Technical Analysis from Award Winning Author John MurphyRelated Topics:* Options Trading Basic � Part 1* Options Trading Basic � Part 2* Understanding Implied Volatility (IV)* Option Greeks* Understanding Option�s Time Value* Learning Charts Patterns* Learning Candlestick Cha...

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