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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (67830)	1/28/2001 10:33:08 AM
From: Michael Watkins	Read Replies (1) \| Respond to of 99985

LG, , "from my experience" rising wedge patterns formed in an uptrend most often portend a partial retrace of the pattern. Of course, they can be the start of a reversal, but the formation in and of itself does not forecast a reversal of trend. I agree 100% with your comment. I'll add to it - in shorter time frames, a well defined wedge that breaks as expected will most often test the bottom of the wedge. Same is true of bear/bull flags although I tend to ignore them completely if they take more than 4-6 bars to build. At the time frames get larger and the duration between start and finish of the pattern grows larger, patterns become subject to failure or 'morphing' into new ones. As always, I'm never surprised if things move as expected or dismayed if they don't, as protective stops are never far behind! ;)