A Continuation Wedge (Bullish) is a bullish pattern signal. It indicates a continuation of the current uptrend. A Continuation Wedge (Bullish) consists of two converging trend lines. The trend lines are slanted downward. This is because prices edge steadily lower in a converging pattern. For example, there are lower highs and lower lows. A bullish signal occurs when prices break above the upper trend line. Percent of successful formations – 81%.
How to trade this pattern?
(1) Go short when the price falls below the lower trend line and place your stop above the upper trend line (resistance) line (continuation pattern).
(2) Go long when price rises above the upper trend line and place your stop below the lower trend line (reversal pattern).
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