Forex traders use various methods to identify possible future trends, using indicators, candlestick patterns, pivot points, Fibonacci retracements and so on, including studying wedge patterns.
Basically, the price patterns formed in the market are from the accumulation of demand and supply which sometimes form unique patterns that provide information about the patterns formed.
The wedge pattern is a price pattern that can indicate a bullish or bearish price reversal. However, patterns like this have three characteristics in common: first, trend lines converge; second, a decrease in volume during the pattern; third, a breakout of the trend line. Wedge patterns come in two forms: rising wedge (which indicates a bearish reversal) or falling wedge (which indicates a bullish reversal) Two popular types of wedge patterns are rising wedge and falling wedge.
Some traders use the wedge pattern to find divergences to determine the right decisions. In this case, traders combine it by choosing the right indicators such as RSI, MACD, and stochastic, all of which are available on trading platforms such as MT4, MT5, or the Ticktrader platform. You can learn trading divergence with wedges on the FXOpen blog.
The level of profitability of trading using this strategy is quite good so it is worth learning and practicing. Before applying it to a real account, you can test it with a demo account first.
Basically, the price patterns formed in the market are from the accumulation of demand and supply which sometimes form unique patterns that provide information about the patterns formed.
The wedge pattern is a price pattern that can indicate a bullish or bearish price reversal. However, patterns like this have three characteristics in common: first, trend lines converge; second, a decrease in volume during the pattern; third, a breakout of the trend line. Wedge patterns come in two forms: rising wedge (which indicates a bearish reversal) or falling wedge (which indicates a bullish reversal) Two popular types of wedge patterns are rising wedge and falling wedge.
Some traders use the wedge pattern to find divergences to determine the right decisions. In this case, traders combine it by choosing the right indicators such as RSI, MACD, and stochastic, all of which are available on trading platforms such as MT4, MT5, or the Ticktrader platform. You can learn trading divergence with wedges on the FXOpen blog.
The level of profitability of trading using this strategy is quite good so it is worth learning and practicing. Before applying it to a real account, you can test it with a demo account first.
