![]() The move was so strong that the bulls never let the correction take on the shape of a normal consolidation pattern that forms pointing down in to the uptrend or a sideways type pattern such as a triangle or rectangle. Note the three red bullish rising patterns that made up that impulse leg to the double top at 775 area. Note the inverse H&S bottom that formed at the end of 2011 at roughly 450 or so. PCLN is a perfect example of what I've described above. Let’s look at a few charts that shows a very bullish move up that is made of several bullish rising wedges or flags. They are also like any other consolidation pattern that generally shows up as a halfway pattern. The opposite is true in a downtrend where you can have a series of bearish falling wedges or flags form. When a stock is in a strong move up you can see series of these patterns that from one after another until a top is reached. I have found out through many years of following these bullish or bearish wedges or flags that they tend to show up in fast moving markets. A rising wedge is formed by higher highs and higher lows. A bullish signal, a falling wedge is a continuation signal in an up-trend and a reversal signal when observed in a down-trend. A falling wedge forms with lower highs and lower lows. A typical consolidation pattern, like a bullish falling wedge or flag, points down in an uptrend which everybody sees and is accepted as the norm. There are 2 basic shapes, both with converging highs and lows: Falling Wedge. Instead of pointing down into the uptrend these type of patterns point up into the uptrend. Because of how the design resembles a flag on a pole, they are also known as bull flags. Bullish flag patterns are common in equities that are in a sustained rally and are regarded as strong continuation patterns. I've been following these two types of patterns for many years and find that are just as reliable as any another consolidation or reversal pattern.Ī bullish rising wedge or flag forms in an uptrend. A bull flag is a bullish pattern, as its name indicates, as opposed to a bear flag, which occurs in the middle of a decline. what is rising wedge what is bear flagwhat is bearish pennant what is bearish rectangle how calculate their targets and explanation about entry and stop loss. That means anything is possible regardless of what is taught by the so called experts. Keeping an open mind in the stock markets is the first lesson to learn. These type patterns are missed by 95% of chartists because they supposedly don't exist and if they do exist they can't be trusted. I'm repeatedly told to go back to charting school to learn my lesson. I have gotten more negative e mails from folks that assure me there is no such thing as a bullish rising wedge or flag. The ascending triangle is a bullish continuation pattern and is. In today's Chartology Report I would like to clear up a misconception about rising wedges and flags. Strategy patterns, chart patterns, ascending chart.
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