Thursday, April 2, 2009

AMG - Rising Wedge


I am pressed for time today. Reasoning will be brief.

AMG formed a bearish rising wedge.

Criteria of Rising Wedge:

Pattern forms in uptrend.
Price, Volume Contraction. Lower trendline sloping nicely upward. Upper trendline not so slanting.
Price touches the 2 trendlines atleast 5 times.
Volume expansion on breakout.
Target: 100% extension of the pattern.


There was no volume contraction in AMG. Did not want to stay in the trade because of the spread and AMG being a low volume stock. Covered completely before target.

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