The first step to trading any pattern like the wedges pattern on both the 30 and 60 minute charts here starts with the Wave.

Remember that wedges are trending patterns and should be traded in a trending markets.

The difference between these two charts is not in the pattern but in the trend.  Notice that the 30 minute is not trending upwards any longer when you take a Wave reading while the 60 still is.  So here is the 60 is the set up.  There are two ways to play this…either correction buys as long as the trend is in place or a reversal if the support breaks down.

Watching and waiting for a breakdown in the USD/JPY 60 minute chart - as long as the MACD Histogram sits below the zero line.

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The EUR/USD is setting up a balanced symmetrical triangle on the 15 minute time frame.  Don’t assume which way the triangle will break!  Instead wait for the break then confirm with the MACD Histogram.  Keep an eye on the 1.3500 area for resistance since it’s a "00" psychologicla number. 

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A rectangle pattern has developed within the congestion of the 15 min. AUD/USD.

The initial trend signals that the preceding trend was strong and this gives the recent consolidation on this chart that much more credibility.

While this is considered a continuation pattern developed from a downtrend, keep in mind the sideways market tells us to be aware of a breakout to either side.

Many times we see patterns set up in trending markets.  These pattens can either be played as continuation set ups (swing entries) or reversal set ups.

The main thing is that the pattern must set up in a trend in these scenarios.  Let’s look at what is setting up this morning:

Watch for a breakout on this chart as it is try to transition to a more sideways market.  I would steer away from a continuation for the current market cycle.

This channel down on the daily chart of the USD/CHF is setting up an a downtrending market and would be a good set up for a swing short as long as th trend is in place and prices do not go above 1.2100 - 1.2115.

The wedge setting up on the EUR/USD is setting up in a more transitioning market as the trend is starting to weaken.  There is decent resistance between 1.3840 - 1.3850 and the breakdown will trigger as the uptrend line is broken.  The line is positioned at the 1.3790 area.