TLT Daily Falling Wedge Just Formed

Falling Wedge

When a security's price has been falling over time, a wedge pattern can occur just as the trend makes its final downward move. The trend lines drawn above the highs and below the lows on the price chart pattern can converge as the price slide loses momentum and buyers step in to slow the rate of decline. Before the lines converge, the price may breakout above the upper trend line.

When the price breaks the upper trend line, the security is expected to reverse and trend higher. Traders identifying bullish reversal signals would want to look for trades that benefit from the security’s rise in price.

NFA. Trade at your own risk.

Golden cross 50/200 EMA

The golden cross occurs when a short-term moving average crosses over a major long-term moving average to the upside. This happens when the short-term average trends up faster than the long-term average until they cross.

This is interpreted by analysts and traders as signaling a definitive upward turn in a market.

There are three stages to a golden cross:

A downtrend that eventually ends as selling is depleted. A second stage where the shorter moving average crosses up through the longer moving average. Finally, the continuing uptrend, hopefully leading to higher prices.