How to trade using the wedge pattern

Understanding what is the wedge pattern?

A wedge pattern can signal either bullish or bearish price reversals. The wedge is a price pattern marked by touching trend lines on a price chart. Here you will see the three paces 1  tow trend line holding and touching. 2 prices consolidating And 3 price break out the trend line. here I am discussing the full wedge pattern trading system. 

wedge pattern trading system

What Type of pattern?

In the chart pattern wedge pattern is a common and popular chart pattern. Basically, there are 2 types of patterns.

• Rising wedge pattern
• Palling wedge pattern

But here is another trick for you. You can use it both side when price uptrend and when price downtrend. Let’s see the details.

Rising wedge pattern on how to use?

Normally rising wedge pattern sing of uptrend reversal pattern but you can play with downtrend also.

Rising wedge pattern in an uptrend

When you see an up-trending market slowing and consolidating at a resistance level it’s a sign of weakness of buyer’s presser. Then when its beak the wedge pattern, then you can sell in an uptrend market.

Rising wedge pattern

 Rising wedge pattern in a downtrend

When you see a downtrend market after then form a rising wedge pattern its sing of buyer’s presser slowing down and continue the downtrend market.

Rising wedge pattern in a downtrend

Falling wedge pattern on how to use?

Basically falling wedge pattern sing of the downtrend reversal pattern but you can play with uptrend also.

Falling wedge pattern in a downtrend

When you follow the downtrend market, then you see price slowing down to support level and price consolidate in a falling wedge pattern. It’s a sing of seller weakness in a downtrend market. You can buy when the price breaks the wedge pattern.

Fallin wedge pattern

Falling wedge pattern in an uptrend

When you follow an up-trending market and you see a falling wedge pattern appear in the chart. That means seller presser weakness in up trending situation. Must be uptrend will continue after the braking of the falling wedge pattern.  

falling wedge pattern in an uptrend