#FALLING WEDGE INDICATOR HOW TO#

The falling wedge develops when the price of an asset declines, however, the range of price movements begins to narrow. It indicates a trend continuation during an established uptrend or a bullish reversal after a downward trend. The falling wedge pattern, also known as the descending wedge pattern, is a bullish formation that can appear in both trend continuation and trend reversal situations. This article explains the falling wedge pattern in detail as well as the technical approach to trading this pattern. Falling wedges occur in an uptrend and indicate a bullish reversal.ĭepending upon where they are found on a price chart, wedges can be interpreted either as a reversal or continuation pattern and can help traders find trading opportunities. If you see this pattern, it means that traders are still debating where to take the pair next.Ī rising wedge is found in a downtrend and signifies a bearish reversal. Wedges represent a break in the current trend. It denotes that the size of the price movement within the wedge pattern is reducing.

#FALLING WEDGE INDICATOR HOW TO#

How to Trade Falling Wedge Chart Patterns?Ī wedge chart pattern is formed when two trend lines converge.Rising and Falling Wedge Patterns – Differences.In Progress – Search for emerging patterns.Channel Width Ratio Start/End – The minimum required channel height difference at the beginning and end of the pattern.Possible values: All, Only Awaiting, Awaiting and Reached, None. Price Targets - Defines which price targets will be drawn depending status of the pattern.If Last Awaiting is selected, only one pattern with the Awaiting status will be displayed, the first point of which is located to the right of all the others. Possible values: All, Awaiting and Reached, Only Awaiting, Last Awaiting. Patterns - Defines which pattern will be drawn depending on its status.

A breakout in the opposite direction will not trigger an alert.

Only the breakout in the direction of the target is registered. It is triggered when a bar that has closed outside the wedge appears. A pattern is considered new if it has a different position of point 1 or 3.

New Pattern.Triggered when a new pattern appears on the chart.

A pattern with the Indefinable status is deleted if it intersects with a pattern that has a different status. If the status of the intersecting patterns is Failed or Reached, or the status of both is Awaiting, then the pattern that is larger will be displayed on the chart. If the indicator finds two intersecting patterns, then preference is given to the one whose status is Awaiting. The indicator cannot unambiguously determine the status of the pattern. Having broken through the upper line of the wedge, the price did not reach the target and went below the extreme point of the lower line of the wedge, or the lower line was broken.

The price broke the upper line of the wedge and reached the target. The wedge has not been broken, or it has been broken and at the same time the price has not gone below the extreme point of the bottom line of the wedge and has not yet reached the target. When the status changes, the color of the label also changes. The label tooltip shows the price and the current status of the pattern. As new bars appear, the line extends to the right until the last bar, until the pattern status changes from Awaiting to another. The dotted horizontal line that ends with the Target label indicates the expected price level after the pattern is completed.

Falling wedge indicator