How to Identify Wedge Patterns

Reading Price Action - Wedge Patterns

Price action represents a series of patterns and signals that offer quality risk to reward potential for entries and exits. Reading Price Action enhances decision-making by identifying the probability of price direction before it emerges. Past behavior, psychology, sentiment, and intuition all play into internalizing the likelihood of price direction.

Intraday Timeframe Process

1. A sharp move away from price
2. Wedge Formation 
3. Above VWAP + EMA = Bullish / Below VWAP + EMA = Bearish
4. Elevated Volume at the Break

Macro Timeframe Process

1. A sharp move away from price
2. Wedge Formation 
3. Holds Above MA's 
4. Elevated Volume at the Break