CHTR broke up from a V Bottom and has traveled from the bottom in a narrowing rising wedge.
RWs are often long term patterns, taking at least 3 weeks to form and can last many, many months
The pattern is not valid unless price breaks the bottom trend line of the RW
CHTR has broken the bottom trendline. CHTR is a strong stock in my opinion, and the average fall for a stronger stock is 35% down. CHTR may have already found support. It remains to be seen
Some stocks merely pierce the bottom trendline briefly and move on. I've noticed the RW often comes back to haunt them later and strangely, the pull back often occurs after an earnings beat!
RWs differ from triangles as both lines slope up in the same direction and converge at the apex and are usually bearish. A stock can break up and out of a RW, CRM did when added to the DOW. Often a break up is hard to hold on to long term though.
RWs are not a healthy pattern for bulls and signal an imbalance between supply and demand, and is caused by too much buying without healthy pull backs. (Irrational exuberance) In the end, there is a shortage of buyers
Rising wedges are among the favorite trades for short sellers and they jump in as soon as that line is broken
Just an observation
The trend is your friend until it is not )o:
RWs are often long term patterns, taking at least 3 weeks to form and can last many, many months
The pattern is not valid unless price breaks the bottom trend line of the RW
CHTR has broken the bottom trendline. CHTR is a strong stock in my opinion, and the average fall for a stronger stock is 35% down. CHTR may have already found support. It remains to be seen
Some stocks merely pierce the bottom trendline briefly and move on. I've noticed the RW often comes back to haunt them later and strangely, the pull back often occurs after an earnings beat!
RWs differ from triangles as both lines slope up in the same direction and converge at the apex and are usually bearish. A stock can break up and out of a RW, CRM did when added to the DOW. Often a break up is hard to hold on to long term though.
RWs are not a healthy pattern for bulls and signal an imbalance between supply and demand, and is caused by too much buying without healthy pull backs. (Irrational exuberance) In the end, there is a shortage of buyers
Rising wedges are among the favorite trades for short sellers and they jump in as soon as that line is broken
Just an observation
The trend is your friend until it is not )o: