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For example, the price of a share reaches a high of $30.00 on Wednesday, and opens at $31.20 on Thursday, falls down to $31.00 in the early hour, moves straight up again to $31.45, and no trading occurs in between $30.00 and $31.00 area. This no-trading zone appears on the chart as a gap.
On the technical analysis chart, a wedge pattern is a market trend commonly found in traded assets (stocks, bonds, futures, etc.).The pattern is characterized by a contracting range in prices coupled with an upward trend in prices (known as a rising wedge) or a downward trend in prices (known as a falling wedge).
A new up line is added when the previous high is exceeded by the underlying chart's close and a down line is added when the previous low is exceeded by the underlying chart's close. [7] If neither previous high (in an uptrend) nor previous low (in a downtrend) is breached by the underlying chart's close, nothing is added to the chart.
Considered a bearish pattern during an uptrend. Inverted Hammer A black or white candlestick in an upside-down hammer position. Considered a bearish pattern in an uptrend. In a downtrend, it indicates a buying pressure, followed by a selling pressure that was not strong enough to drive the market price down.
A rising or falling line is an uptrend or downtrend and Trix shows the slope of that line, so it's positive for a steady uptrend, negative for a downtrend, and a crossing through zero is a trend-change, i.e. a peak or trough in the underlying average. The triple-smoothed EMA is very different from a plain EMA.
On the technical analysis chart, the head and shoulders formation occurs when a market trend is in the process of reversal either from a bullish or bearish trend; a characteristic pattern takes shape and is recognized as reversal formation. [1]
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