Technical Trading Tips and Techniques by 
I received a question about the differences between triangles and wedges, so I just wanted to write a quick post about it. Much like symmetrical triangles, wedges are generally larger chart patterns that are characterized by two converging lines. But unlike the lines of a symmetrical triangle, which slope in opposite directions, the two sides of a wedge will both slope in the SAME direction (up or down) at different angles. Therefore, a rising wedge will have two converging sides that both slope up, while a falling wedge will have two converging sides that both slope down. Falling wedges after uptrends are usually considered bullish continuation patterns, while rising wedges after downtrends are usually considered bearish continuation patterns. Other wedge scenarios are generally taken on a case-by-case basis. Trading signals, like with triangles, are triggered on the breakout or breakdown of the wedge. In the Forex market, wedges occur on a relatively frequent basis.
- James
James Chen is the Chief Technical Analyst at FX Solutions, a leading Forex broker. He is also a registered Commodity Trading Advisor (CTA) and a Chartered Market Technician (CMT) Level 3 candidate. At FX Solutions, Mr. Chen writes daily currency analysis, conducts forex trading seminars, and has authored numerous articles on currency trading and technical analysis for major financial publications. His upcoming book, Essentials of Foreign Exchange Trading
Hi , I agree with this article, just sometimes I read so fast everything and I miss things that after read them again, I can understand it better.. ;). Your Wedges Blog Stumbled up and Bookmarked, so I keep updated on every article you write from now now on forex signals.
Thanks for visiting and for your comments!
- James