What is the difference between the wedge pattern and the triangle pattern. Where is the difference between regular divergence and hidden divergence. I can’t tell them apart by drawing. thanks
Wedge and triangle patterns have a basic similarity of a progression of bars with reducing volatility, illustrated by the upper and lower boundaries of the price action converging towards each other, and eventually towards a point in the future. the idea is that price will eventually break out upwards or downwards before price reaches the point of convergence. Many say measure from the base at the left to the future end on the right and price normally makes a break-out two-thirds of the way along the time axis. Many also say that whichever direction price came from to build the pattern, price will exit in the same direction.
I don’t think many people find these terrifically helpful patterns in trading.
As far as hidden divergence is concerned, I haven’t a clue. Well, who needs that anyway?
i think you already got the real answer by tommor . have a great day. happy trading.
Hi Ngaala! You can find the explanation of these patterns in the School of Pipsology,
Speculations using the wedge and triangle pattern are quite similar. You can find a lot about them in youtube videos as well.
There is a difference between rising wedge and acscending triangle, you know. So, rising wedge is pattern that forms on fluctuating chart and is cause by narrowing amplitude. It is a bearish reversal pattern and it’s kinda difficult to spot it. Even though bulls and bears appear to be in a relative equilibrium , the narrowing of the rising wedge corridor suggests that supply will be in demand, however it’s not always like that. Triangles whether ascending or descending can’t be considered as indicatotrs which point on trend reversal, acending trianle is just a growth pattern I guess. So, these are the differences.