WEDGE TRADING STRATEGY

1-How should we use this strategy?
Whenever in a BEARISH-trend, seeing that the distance between the HIGH and LOWS gradually increases
imagen

2-Connect the HIGHS and LOWS with two diagonal lines.
If the slope of both lines is negative and divergent, we have an EXPANDING WEDGE
imagen

3-In the following, we use the RSA indicator. If you see a divergence between the last two HIGHS, look for confirmation of the construction of the HIGH and growth
imagen

4-There are different ways to identify LOW formation
The simplest is the breaking of the BEARISH trend-line of the last falling movement.

With the breaking of this trend-line, the construction of the LOW and the start of growth is confirmed!!
imagen

5-Result: growth with strong momentum
imagen

6-Question from you???
What can this sharp drop mean before continuing growth?
Comment me. I will give a prize to the best answer
imagen

Chart PatternsTechnical IndicatorsTrend Analysis

Exención de responsabilidad