Wedging Pattern

David Ryan, 3 time U.S Investing Champion, has shared numerous examples of wedging on IBD Live. In a wedge, stocks are typically in a downtrend. In this pattern, prices are showing lower highs and lower lows. This indicates a lack of upward momentum and usually precedes further weakness.

Characteristics of Wedging Stocks

▪ Slow moves up, quick moves down
▪ Wedges rarely make new highs
▪ Volume is often below average
▪ Lower highs and lower lows