Group: Reversal
Description: A narrowing downward-sloping channel, often signaling a bullish reversal.
Key Characteristics:
- Lower highs and lower lows
- Converging trendlines
- Volume decreases inside the wedge
Trading Logic: Buy on breakout above the upper boundary. Stop-loss below the last low. Target equals the wedge’s height.
Example: Common in stocks after major sell-offs.
Conclusion: A reliable bullish reversal pattern.
