4/20/2024 0 Comments Falling wedge measured move![]() A wedge reversal pattern occurs when the market makes three pushes in either a rising or falling convergent triangular pattern. You can learn to trade more subtle wedges in the S&P Emini giving you more setups to look for. Human eyes and brain are much better for pattern detection and for live trading off those patterns. Computers can be programmed to draw simple things like trendlines but then they tend to draw them all over the cotton picken chart thus rendering as a porridge of confusing BS that does no one any good but just keeps the computer humming along busy. This is hard to get computers to do all this. Context in which patterns take place or form, helps in the determining what to do. WHAT I AM GOING TO DO IN THIS SENARIO of failed wedge bottoms is short every flag back up towards the M.A. I am looking for wedge bottoms to fail (knowing that a failed wedge bottom haS a high probability of at least two more legs down.maybe i can grab one of those legs). What would you do? Go long because there is a wedge bottom? Not me. Look at the chart on successive failed wedge bottoms. Sadly such traders just did not know how to interpret the pattern within the larger context and assess probable failure or success and then know what to do in case of failure. Many traders give up on patterns and toss them into the garbage can of pure BS with no better than a 50% chance of working out. When they fail it is just as important to know what to do as when they succeed. Plus all patterns fail ALMOST as much as they succeed. Study the megaphone pattern and you will see a wedge top within it. Or a wedge within an expanding triangle or megaphone pattern. For instance, a wedge within a bigger wedge. ![]() ![]() ![]() They cannot "see" what the human eye and brain can detect. This is why computer programs will have a hard time finding and drawing patterns. In anthropological terms it is called a "functional substitute" It may not look like a triangle but functionally it is. It doesn't necessarily have to be a wedge shape "par excellence."Ī triangle is basically a sideways move with 3 pushes up or down. For instance, a wedge top is basically 3 pushes up. Probally best to just use your eyes and work off of principles. ![]()
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