A typical stop loss strategy is to place the stop loss beyond the last swing high or low of the pattern.The entry comes on a retest of the broken level and can sometimes occur immediately without a rounded retest.The breakout is confirmed on a close below support for a rising wedge and above resistance for a falling wedge.The time frame used depends on the time frame that is respecting both levels the best.The wedge must have three touches on each side in order to be considered tradable.A rising wedge is often seen as a topping pattern while a falling wedge is more often than not a bottoming pattern.Like the strategies and patterns we trade, there are certain confluence factors that must be respected. The rising and falling wedge are no exception.īelow are some of the more important points to keep in mind as you begin trading these patterns on your own. However, by applying the rules and concepts above, these breakouts can be quite lucrative.īoth of these patterns can be a great way to spot reversals in the market. As you can see, there is no “one size fits all” when it comes to trading rising and falling wedges.Īs you can see, there is no “one size fits all” when it comes to trading rising and falling wedges.

Falling wedges