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Wedge A continuation formation that resembles the outline of a
pennant, but without the pole. It consists of a brief consolidation period
within a solid and steep upward trend or downward trend. The consolidation
is sharply angled in the opposite direction from the slope of the original trend.
The consolidation is bordered by a support line and a resistance line that
converge, making it look like a sharply angled triangle. When the currency
resumes its original trend by breaking out of the consolidation, the price
objective is the height of the wedge, measured from the breakout price level.
Wedge A continuation formation that resembles the outline of a
pennant, but without the pole. It consists of a brief consolidation period
within a solid and steep upward trend or downward trend. The consolidation
is sharply angled in the opposite direction from the slope of the original trend.
The consolidation is bordered by a support line and a resistance line that
converge, making it look like a sharply angled triangle. When the currency
resumes its original trend by breaking out of the consolidation, the price
objective is the height of the wedge, measured from the breakout price level.