Wedge Pattern Indicator
Platform: MT4 Type: Pattern Last update: August 9, 2024The Wedge Pattern Indicator scans charts and automatically recognizes the Rising Wedge pattern and the Falling Wedge pattern. Generally speaking, the Wedge Pattern is a great breakout pattern and strong impulse usually take place after that. With the help of that gauge, you can benefit from it too.
Closer look on the Wedge Pattern Indicator
When you load up the indicator in your MT4 trading platform, you will see a couple of trendlines, which are the following:
- Turquoise lines — wedge pattern lines,
- Yellow lines — trendlines,
- Gray dotted lines — standard deviations of the trendline.
One should focus on the turquoise lines, which together create a wedge pattern. When that pattern is completed and the price breaks out of the wedge, that is a trigger for a trade opportunity. Simply speaking, a bullish breakout trade opportunity occurs when the price breaks and rises above the upper wedge trendline. Conversely, a bearish breakout trade opportunity occurs when the price breaks and falls below the lower wedge trendline.
Example charts
Check charts of the Wedge Pattern Indicator in action.
In the example above, the price is coming to the corner of the wedge and, most probably, a breakout is going to happen very soon.
In the second example, the price has just broken the lower wedge trendline. It will drop further very likely.
Settings
These are available settings.
