By Investment U Research Team Wedge pattern trading is another basic concept that most beginner day traders need to familiarize themselves with. It takes cues from ABCD and flag patterns. And it’s a more nuanced indicator for market behavior—especially in the context of consolidation. The primary function of this pattern is to help day traders recognize the opportunity for a price reversal and act accordingly before it comes to fruition.
Like flag pattern trading, wedge pattern trading is based on the idea of an impending price break, signaled by trending fluctuations in the price. Where it differs is in the convergence of those fluctuations into …read more
