General General tips for using the wedge model

[mhmo2005]

Although the idea behind the wedge pattern is easy to understand, it takes some practice to figure out what the ideal shape of this pattern looks like. Try to spend some time browsing forex charts and looking for wedge patterns. Draw trend lines to make sure you spot the right pattern. Save photos of these models, especially those with a perfect design, that have generated good mentions. Study these photos so you know exactly what to look for. Context is very important. Ideally, you should trade wedge patterns that form in the middle of a relatively smooth up or down trend. You may find it hard to predict what will happen if a wedge pattern forms in a cross market, especially with so many random moves. Wedge patterns cannot be 100% reliable, so it pays to look for some kind of confirmation before entering a trade based on them. For example, you can plot moving averages or any other indicators on the chart to create additional context and refine your analyses. If more than one pattern/indicator gives you the same information, it will be a more reliable trading opportunity. Always do your tests. Regardless of how you intend to incorporate wedge patterns into your strategy, you will need to test what you are doing before you risk using them in real money trading. Backtest and use a demo account until you are confident that you can trade profitably.

 

[john90]

Although the idea behind the wedge pattern is easy to understand, it takes some practice to figure out what the ideal shape of this pattern looks like. Try to spend some time browsing forex charts and looking for wedge patterns. Draw trend lines to make sure you spot the right pattern. Save photos of these models, especially those with a perfect design, that have generated good mentions. Study these photos so you know exactly what to look for. Context is very important. Ideally, you should trade wedge patterns that form in the middle of a relatively smooth up or down trend. You may find it hard to predict what will happen if a wedge pattern forms in a cross market, especially with so many random moves. Wedge patterns cannot be 100% reliable, so it pays to look for some kind of confirmation before entering a trade based on them. For example, you can plot moving averages or any other indicators on the chart to create additional context and refine your analyses. If more than one pattern/indicator gives you the same information, it will be a more reliable trading opportunity. Always do your tests. Regardless of how you intend to incorporate wedge patterns into your strategy, you will need to test what you are doing before you risk using them in real money trading. Backtest and use a demo account until you are confident that you can trade profitably.

patterns come in very handy....better analysis