Abstract
Rising wedge is one of the traditional patterns in technical prediction toolkit claimed to be potent to foretell security prices. Price objective is the expected post-pattern price movement that the pattern is expected to achieve immediately after breakout of prices from lower boundary. This paper examines whether the pattern achieves price objective expected of it so as to consider it as a predictive tool for superior return. The study finds that all the rising wedges are not 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, Rising Wedge, Price Objective, Achievement, Predictive Tool.
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