c h a p t e r s e v e n • t e c h n ic a l a na ly s i s : c om mon c h a rt s & t e r m s
Mark’s Tip! On Wall Street Survivor you can draw your own trendlines on charts. Click the Draw Trendlines box to turn it on, and then click on the chart to mark the beginning and end points of the lines.
How to draw a trendline on Google’s Chart
7.7 Wedges & Flags A wedge describes a triangular shape formed by the intersection of two trendlines, which form the apex. The wedge need not be upward-facing; it can easily be an inverted triangle. A falling, or bearish wedge is often called a flag since it more resembles a pennant than a regular triangle.
Bearish Wedge, or Flag
A flag consists of two converging trend lines which are slanted upward. Unlike the triangles where the apex is pointed to the right, the apex of this pattern is slanted upwards at an angle. This is because prices edge steadily higher in a converging pattern i.e. there are higher highs and higher lows. A bearish signal occurs when prices break below the lower trendline. 115 115