us straight on this one, as you can see that the projected dashed lines for thewedge meet well after the breakout point. Compare this to the pennant,which is much more akin to a triangle. Sometimes the difference betweenthese two formations is hard to judge. For example, the pattern in Chart 12-6was called a pennant, but it could arguably have been called a wedge. If anything,wedges generally appear to take longer to form than pennants.Chart 12-10, for Yahoo, shows a rising wedge that develops after the firstdecline. You can see that the lines are not even close to a meeting point asthe breakout develops. Note also that volume picks up the day of the breakout.During a bear trend, it is possible for prices to fall of their own weight.However, when activity picks up, it indicates that the sellers are motivatedand makes the whole situation that much more bearish.Chart 12-11, featuring Vitesse, offers a good example of a small risingwedge in terms of price action. Volume characteristics, though, are nottypical, since there is no contraction as the wedge is forming and noexpansion on the breakout. This example shows that it is possible forwedges, like other formations, to develop without the classic volume configuration.In most situations, though, the gradual shrinking of activityas the pattern forms and the explosion on the breakout usually result ina more powerful move. Also, when volume contracts during the formativeperiod, it offers a valuable clue that the pattern will turn out to be
valid.
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