K-line pattern interpretation-wedge

辉哥说势 · 2023-07-21T04:44:54.000Z

The wedge shape is similar to the flag shape, and both are short-term adjustment forms. From a morphological point of view, both shapes are like flags hanging on a flagpole, except that the flag is a parallelogram, while the wedge is an upper and lower neckline that will cross in a short period of time to form a flat and long triangle, shaped like a pennant. . The wedge shape often appears on the way up or down, because no matter whether it is a strong rise or a sharp fall, the price cannot keep rising or falling, and there will be a period of rest. When the market rests, the K-line trend often appears in a wedge shape. The wedge shape can also be said to be a gas station for bulls or bears. It generally does not stay for a long time. Once the gas is filled, the price will start again. Wedge trends can generally be divided into rising wedges and falling wedges.

The wedge pattern is similar to the flag pattern, both of which are short-term adjustment patterns. From the perspective of shape, both patterns look like flags hanging on flagpoles, but the flag pattern is a parallelogram, while the wedge pattern has two necklines, which will cross in the short term to form a long flat triangle, shaped like a pennant.
The wedge pattern often appears during an uptrend or a downtrend, because no matter whether the market is rising strongly or falling sharply, the price cannot keep rising or falling, and there will be a period of rest. When the market is resting, the K-line trend often appears in a wedge shape. The wedge pattern can also be said to be a gas station for the long or short side, which usually does not stay for long. Once it is filled with gas, the price will start again. The wedge trend can generally be divided into an ascending wedge and a descending wedge.
Rising wedge features:
1. It is formed by the intersection of the upward sloping resistance line and the upward sloping support line;
2. The support line has a greater inclination angle than the resistance line, and the low point rises faster than the high point;
3. When it appears in an upward market, it is a reversal signal; when it appears in a downward trend, it is an adjustment signal.
The characteristics of the falling wedge are opposite to those of the rising wedge. However, after the falling wedge breaks through the resistance line, it will not change as quickly as the rising wedge. Its price curve will most likely form an arc bottom and then rise slowly.
When investors encounter a wedge consolidation pattern, what are the operating strategies?
Operation strategy of rising wedge: When the stock price breaks through the lower line of the rising wedge, investors should clear their positions immediately.
Falling wedge operation strategy:
1. After the index (coin price) breaks upward (3%), a buying strategy can be adopted.
2. If the index (coin price) does not break the downward trend line during backtesting, you can increase your purchases.
3. The estimated minimum increase of the index (coin price) in the future is the high point of the wedge.
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