![]() One at the origin and the next one at the 1.272 Fibonacci extension level to maximize profits. You can also split it into two take profit levels. ![]() Take profit level is mirrored by measuring the height of the first swing wave in a rising or falling wedge pattern. Keep in mind, breakout candlestick must have at least 70% body (means small wick and big body). And then you will decide yourself which one option will be good. Here you will use your common sense and calculate risk reward ratio for each case. There are two options here, either to trigger a trade just after breakout of the trend line or to wait for retracement to the Fibonacci 50 level. Stop loss can also be placed above the key level which will be a more safe option but as we also have to look for a good risk reward that’s why first one is good. A rising wedge in an uptrend is considered a reversal pattern that occurs when the price is making higher highs and higher lows. Make sure to add spread while adjusting the stop loss level. Identifying the rising wedge pattern in an uptrend. Stop loss will be above the last high made by the price before breakout of trend line in case of rising wedge chart pattern. Now let’s talk about the stop loss, take profit and entry of trade setup. Typically, active traders and investors combine the ascending wedge with other forms of analysis to confirm. ![]() It is a bearish indicator and is frequently used to short the market and capitalise on topside reversals or downtrend extensions. If Price break the trend line without touching resistance or supply level, then it can be a false breakout to trap retail traders. The ascending wedge is a sought-after chart pattern for legions of forex, futures and equities traders. Like if there is forming a rising wedge pattern and there is also a strong resistance or supply level above then if Price break trend line after touching the resistance and supply level then it is a good pattern. ![]()
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