chart patterns (reversal wedge pattern)
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  1. #1
    Trader tfs2012's Avatar
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    Lightbulb chart patterns (reversal wedge pattern)

    Definition of the wedge pattern
    This pattern is composed of price waves moving in the form of a narrowing range in an ascending or descending angle
    and it may be a corrective or reversal pattern
    When the pattern appears at the end of a down trend it is called "falling wedge"
    When it is at the end of an up trend it is called "rising wedge"




    How do you trade this pattern?

    You have to wait until the price breaks out of wedge You can then sell or buy directly or wait for the price to return to test the pattern

    Stop Loss
    The safest place to place a stop loss is under or above the last wave of the pattern

    Take profit
    There is more than one way to determine the take profit
    -You can take the length of the first wave of the pattern and project it at the breakpoint and this will give you your target
    -The support and resistance levels of the pattern can also be considered as targets

    Confirmations
    For me, the best thing is to have a divergence at the end of the pattern with the MACD
    Example

    this is an example for the "falling wedge" on the eur / cad


    KfAzBjN.jpg

    you can know more about divergence here How-do-I-use-Divergence-in-my-trades

    also, you can check out the head and shoulders pattern here chart-patterns-(head-and-shoulders)

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  2. #2
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    reversal wedge is a good and strong pattern of the chart and so the trader can trade with it and he will be able to make good profits from the market especially if it is formed on the longer time frames, the trader needs to know the different paterns of the chart as this will help him to read the chart better and maximize the profits in most cases.

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  3. #3
    Trader ict2014's Avatar
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    Trade the rising and falling wedges are a safe way. Forex business emotional base business and easily trade become weak to trade the market not observing what is exactly trend market has been executing. On the internet, there are more topics and video or audio tutorial which helps us to trade well and keep save our trading money.



    When the market is trending one side we easily address failing wedge and rising wedge mostly. I show here a gold chart a few months ago that made gold.

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  4. #4
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    reversal wedge patterns is good for trading and let the trader to know when to put the order and so the target will be big because trading with the wedge depends on the breakout of the current trend and so the trader can follow the new trend until its end and this will increase the possibility of earning and let the trader to be satisfied with the results.

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  5. #5
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    There are a lot of reversal patterns. Depends on the market which one it gives us and reversals patterns can be full of fake breakouts as well. When there is reversal or consolidation pattern is forming it always gives a lot of breakouts but it is hard to find which one is a real breakout. If we know the patterns completely and have practiced then trading them is not difficult as practice makes a man perfect.

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  6. #6
    Trader pajero's Avatar
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    Quote Originally Posted by No Or View Post
    There are a lot of reversal patterns. Depends on the market which one it gives us and reversals patterns can be full of fake breakouts as well. When there is reversal or consolidation pattern is forming it always gives a lot of breakouts but it is hard to find which one is a real breakout. If we know the patterns completely and have practiced then trading them is not difficult as practice makes a man perfect.

    indeed there are a lot of chart patterns, one of which is this homepage. but in my opinion we don't need to memorize all the names, just we know the characteristics to be able to use it, so when we find a patron in the market we will easily identify it and use it without having to memorize the name

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  7. #7
    Trader snnaky's Avatar
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    Thank you my friend for this wonderful participation, which i consider very useful for each member and i agree with you Price patterns are excellent in predicting price.
    Yes price patterns are one of the best technical tools. There are many excellent price patterns in discovering price behavior
    Such as head, shoulders and flags, including Wedge. Yes I agree with you that this is good and used by many professional traders because it makes the trader catch the precious fishing but small traders can not wait very much

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  8. #8
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    the chart patterns are strong for trading and the trader that trades with them will be able to trade well and makes good money from the market, the trader needs to wait for the proper time and choose the best positions of trading and so he will be able to make an easy money and will save the account from big loses and will survive for long time in the market.

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  9. #9
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    As a classical technical analyst I used all the patterns of price, continuity and reflexivity, and the best patterns for me are the head and shoulders, reversal wedge pattern, double top or double bottom, and for patterns of continuity I love the flag pattern and advise everyone to learn and use these patterns

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  10. #10
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    It’s my bet that you have been told to keep it simple and stick to the major currency pairs such as EUR/USD or GBP/USD. While this may be true for some of you, the smarter trader might decide to trade the cross rates instead. Don’t be shy in exploring the full spectrum of currency pairs that are on offer to see what is going to best suit your system. The cross rates often now have spreads that are very close to the majors, and because less people specialize in them, you may find you develop a nice edge by choosing to focus on them.

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