10000 Elephants

10000 Elephants

Wedge

A Wedge formation is very similar to a Channel formation with the difference being that the high and low of the stock price become closer and closer. As the wedge is formed, the price can breakout on the upside or downside of the channel.

The stock will generally continue in the direction of the breakout.

Wedge Formation with an Upward Breakout

 

A wedge formation with a downside breakout