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Raising Wedge – The Pattern

Opportunities often arise when things look bleak, if you know what to look for. This phenomenon is recognised in the Chinese language, where the character for crisis also means opportunity. A rising wedge is a technical indicator, suggesting a reversal pattern frequently seen in bear markets. This pattern shows up in charts when the price moves upward with pivot highs and lows converging toward a single point known as the apex. Using two trend lines—one for drawing across two or more pivot highs and one connecting two or more pivot lows—convergence is apparent toward the upper right part of the chart. This pattern was explained in our daily analysis on 9th of June 2021 (Figure on next page). During the formation, there are a few indicators that can be used to determine whether the pattern is a real pattern or a disguise. This formation typically moves toward to the right, and the volume should be decreasing, showing a divergence between price and volume. One thing loved about this pattern is that once the breakdown happens, the target is reached very quickly. Unlike other patterns, where a confirmation must be shown before a trade is taken, wedges often do not need confirmations; they normally break and drop fast to their targets. Targets are usually located at the beginning of the upper trend line, or the first pivot high where the trend line is connected. In our chart, the target was set at 15640.

Evening Doji Star– The Pattern

A Evening Doji Star consists of a long bullish candle, followed by a Doji that has gapped above it, then a third bearish candle that closes well within the body of the first candle and in doing so confirming the reversal. It is considered a strong bearish price reversal candlestick pattern. We highlighted this pattern on 15th June 2021 analysis. Market opened at 15866.95, seen a high of 15901.60 and a low of 15842.40 and finally closed at 15869.25. Forming a perfect Doji, looked like forming an Evening Star. We predicted this as a Evening Doji Star and on 16th June 2021 we got a bearish candle thus confirming the same.

Bullish Symmetrical Triangle – The Pattern

The symmetrical triangle pattern is easy to spot thanks to the distinctive shape which is developed by the two trend lines which converge. This

pattern occurs by drawing trend lines, which connect a series of peaks and troughs. The trend lines create a barrier, and once the price breaks through these, a very sharp movement in price follows. We highlighted this pattern on 6th May 2021 analysis. Market opened at 14668, seen a high of 14743 and a low of 14611 and finally closed at 14724. Nifty was strong and up by 107 point from previous close. On daily chart it was clearly breaking the trend line and all set to create history.