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Technical Price Prediction and Achievement of Price Objective- A case Study of Falling Wedge Pattern

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Issue Abstract

Abstract

Falling wedge is one of the traditional patterns in technical prediction tool-kit claimed to be potent to foretell security prices. Price objective of this pattern is the ‘extent of price rise’ that is traditionally expected to follow immediately after price breaks out upper boundary. This paper examines whether the pattern achieves traditional price objective so as to consider it as a predictive tool for superior return. The study finds that all the patterns are not equally reliable to act upon as all of them do not achieve the whole price objective even on the third reversal day post signal and hence lack predictive value. 

Keywords: Technical Analysis, Stock Market. Stock chart, Pattern, Falling wedge, Price Objective Achievement, Predictive Tool, Superior Return. 

Author Information
Dr. Sajeeve V.P.,
Issue No
5
Volume No
1
Issue Publish Date
05 May 2019
Issue Pages
14-21

Issue References

Bibliography

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