Closer look into Rising/Falling Wedge, Reversal Price Action structures/patterns
Hi traders:
Today I will go more in detail on rising/falling wedge correction in price action structures/patterns.
You might have already heard about these types of correctional structures, and many traders who utilize them. Certainly there are many ways of traders identifying them and taking advantage of these kinds of price action, so it's ideal for you to understand them in your analysis.
We first need to understand that a rising/falling wedge is a REVERSAL price action. Meaning when the correction completes, there's a higher probability of the price to reverse.
You might have already seen multiple price action videos from me that go over all sorts of continuation and reversal price action (I will share links below), and I always talk about when combining multiples of different price action structures/patterns will give you a better edge at entering positions that work out in your favor.
Same idea here, so let's take a look at how rising/falling wedges are, how to identify them, and how to effectively use them in your analysis.
Rising/falling wedge, just as the name suggests, is an ascending/descending type of correction where the price is getting squeezed into a “wedge”. As the price gets narrower and narrower, there's a higher probability of the price to “reverse” from the wedge.
Now about entries, certainly many traders have their own method of entering, so I will share my point of view and the way how I like to enter them. Any questions, comments or feedback welcome to let me know :)
Thank you
Risk Management: 3 different entries on how to enter the impulsive phrase of price action
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