An ideal wedge pattern is when price impulsively moves in a certain direction and then loses momentum and slows down creating a pattern which resembles a "wedge".
This signifies the move is now exhausted and watch out for a potential reversal. So the objective of the strategy is to enter the trade when price breaks the wedge and cash in on the reversal.
With all forex strategies you need more odds in your favour, so to get wedge patterns which have a higher probability of reversing you need to find more confluences along with the wedge and the best one which compliments the strategy is to only take wedge patterns at resistance zones/supply and demand zones.
So to make life easier and not to guess if price formed a wedge or not i created a wedge indicator called "Key level wedge" indicator and it can be found on mt4 and mt5 here :
Key level wedge mt5
Key level wedge mt4
Here is a video to show how to pick the best wedge patterns and what characteristics to look for on some live charts..
This signifies the move is now exhausted and watch out for a potential reversal. So the objective of the strategy is to enter the trade when price breaks the wedge and cash in on the reversal.
With all forex strategies you need more odds in your favour, so to get wedge patterns which have a higher probability of reversing you need to find more confluences along with the wedge and the best one which compliments the strategy is to only take wedge patterns at resistance zones/supply and demand zones.
So to make life easier and not to guess if price formed a wedge or not i created a wedge indicator called "Key level wedge" indicator and it can be found on mt4 and mt5 here :
Key level wedge mt5
Key level wedge mt4
Here is a video to show how to pick the best wedge patterns and what characteristics to look for on some live charts..
Inserted Video
"Cut your loses short and let the winners Run"
