Browse Stacks: Patterns: Wedges: SPXm2.png (768×456)

SPXm2.png (768×456)

The mother of all wedges


Why doesn't the peak that broke through that wedge count for anything? You could draw another line to make a it a slightly fatter wedge but the long term trend has more weight. So there's no chance it'll break up to follow the longer trend held between 1988 and 2008. Because rising wedges almost always deliver downside. 10/14/18
Details.... 10/14/18
If you move the long term trendline up to catch that peak it would violate the touch points from earlier, invaditating the trendline. If you are going to have a false breakout of a trendline it's better to be right at the beginning or end. I mean, in reality it is a ghost trendline anyway, the 2008/2009 crash invalidated it. 10/14/18