![]() Sadly, there is nothing that works 100% in trading. Examples of a Bullish Rising Wedge and Bearish Falling Wedge. Since we know a wedge pattern has a higher probability to reverse and due to the fact that the price of wedge pattern converges to a smaller area, we can trade the reversal set up with a relatively close stop loss to its entry price, which provides us with a good trading opportunity with a decent Risk:Reward ratio. Therefore as the rule of thumb, people generally treat a falling wedge as a bullish pattern and a rising wedge as a bearish pattern, especially a falling wedge would be a more reliable reversal indicator than a rising wedge. Some studies suggest that a wedge pattern will breakout towards a reversal rather than a continuation more often than two-thirds of the time. Why We Should Pay Attention to Wedge Patterns? It breaks out from one of the trend lines. It has declining volumes as the pattern progresses.ģ. Wedge with downside slant is called falling wedgeĢ. ![]() Wedge with an upside slant is called a rising wedgeī. Wedge patterns have converging trend lines that come to an apex with a distinguishable upside or downside slant.Ī. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.What Is the Wedge Pattern and Its Common Characteristics?ġ. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. NO REPRESENTATION IS BEING MADE THAT ANY PERSON WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE BEING SHOWN. SIMULATED OR HYPOTHETICAL TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. ALSO, BECAUSE THESE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THESE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. UNLIKE THE RESULTS SHOWN IN AN ACTUAL PERFORMANCE RECORD, THESE RESULTS DO NOT REPRESENT ACTUAL TRADING. *CFTC RULE 4.41(b)(1)/NFA RULE 2-29 - SIMULATED OR HYPOTHETICAL PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. Failure to seek detailed professional, personally-tailored advice prior to making any investment could result in actions contrary to your best interests and loss of capital. Do not act on this information without advice from your investment professional, who you should expect to determine what is suitable for your particular needs and circumstances. It is intended for educational purposes only and NOT as individual investment advice. This website does not take into account your own individual financial and personal circumstances. Do not risk any money you cannot afford to lose. Trading requires risking money in pursuit of future gain. We emphasize that no information set forth on this website is an invitation to trade any specific investments. Users should consult with their own professional investment, tax, and portfolio advisers before making any decisions in investing and should independently verify all information on any sites or products by Free Trading, Inc dba Grok Trade. The past performance of any trading system or method is not necessarily indicative of future results. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. This website is neither a solicitation nor an offer to Buy/Sell any security. Do not risk capital you cannot afford to lose completely. You must know the risks and be willing to accept them to invest in the securities markets. Government Required Disclaimer - Stocks, ETFs, mutual funds, commodities, bonds, futures, options and any securities trading has large potential rewards, but also a large potential risk.
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