1. Identify the Pattern
Spot a narrowing wedge with lower highs and lower lows.
Look for decreasing volume as the pattern develops.
2. Wait for a Breakout
Entry is above the resistance line (upper trendline).
Some traders wait for a close above the trendline or a retest of the breakout level.
3. Set Entry
Buy at breakout or on the retest of the broken trendline.
4. Set Stop-Loss
Below the recent swing low inside the wedge or just outside the support line.
5. Target Price
Measure the height of the back of the wedge and project that distance upwards from the breakout point.
Spot a narrowing wedge with lower highs and lower lows.
Look for decreasing volume as the pattern develops.
2. Wait for a Breakout
Entry is above the resistance line (upper trendline).
Some traders wait for a close above the trendline or a retest of the breakout level.
3. Set Entry
Buy at breakout or on the retest of the broken trendline.
4. Set Stop-Loss
Below the recent swing low inside the wedge or just outside the support line.
5. Target Price
Measure the height of the back of the wedge and project that distance upwards from the breakout point.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.