Wedges

Wedges form as an asset’s price movements tighten between two sloping trend lines. There are two types of wedge: rising and falling. A rising wedge is represented by a trend line caught between two upwardly slanted lines of support and resistance. In this case the line of support is steeper than the resistance line. This…

Pennant

What is a Pennant? In technical analysis, a pennant is a type of continuation pattern formed when there is a large movement in security, known as the flagpole, followed by a consolidation period with converging trend lines – the pennant – followed by a breakout movement in the same direction as the initial large movement, which represents the second half…