Traders use this wedge pattern to identify potential trend reversals in the stock market, with two types of wedge patterns, rising and falling, providing different signals depending on the breakout direction.
If the price moves above the upper band, it’s a signal to buy. If the price moves below the lower band, it’s a signal to sell.
The Double Bottom pattern is a bullish chart pattern that is commonly used in technical analysis.
A double top pattern is a bearish reversal pattern that forms after an extended uptrend.