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Wedge

Watch a price range narrow.

A wedge is bounded by two converging trend lines. Study the slope of each boundary and how the distance between them changes as price develops.

Try this on the chart

  1. Trace the upper and lower boundaries through the swing points.
  2. Compare the width of the formation at its beginning and end.
  3. Observe whether candles stay inside the boundaries or close outside them.
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Does a wedge guarantee the next price direction?

Patterns are examples, not confirmed breakouts. Further reading: identifying chart patterns.