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# Wedge – Rising Wedge and Falling Wedge

## Wedge – Rising Wedge and Falling Wedge

Thirty Third session of Forex Training

Welcome back to Forex professional training in financial markets.

Wedge – Rising Wedge and Falling Wedge will be studied in this session.

### Wedge

Wedge pattern is a continuation and reversal pattern that has two types: Rising Wedge and Falling Wedge.

### Rising Wedge

Rising Wedge can be formed on an agreeing or reverse point on the basis of a trend direction.

If it is formed on a downtrend then it would be a continuation pattern, while on an upward trend it would be reversal pattern.

The distance between the peak and the valley of the first wave would be our TP amount below the breakout point.

The distance between the peak and the valley of the last wave should be our SL amount above the breakout or entry price.

### Falling Wedge

On the basis of a trend direction, Falling Wedge can be agreeing or a reverse pattern.

If it is formed on a downtrend then it would be a reversal pattern, while on an upward trend it would be a continuation pattern.

The distance between the peak and the valley of the first wave would be our TP amount above the breakout point.

The distance between the peak and the valley of the last wave would be our SL amount below the breakout or entry price.

There are several examples on the MT4 platform. A Falling Wedge on an uptrend has a continuation manner.

Trendline can be drawn to clarify the trend zigzag movement. TP amount can be calculated by the first wave, 434 pips.

After price has crossed the breakout point, a Buy order can be placed with 434 pips higher than the entry price.

Trader can draw a Trendline to indicate TP, otherwise, it can be shown by a Fibonacci pattern by relocating it to the breakout point.

SL is under the valley of the last wave, thus TP would be much higher than SL. Another example shows a Rising Wedge on an upward trend.

TP amount can be calculated by drawing a Fibonacci pattern. By relocating the Fibonacci pattern, TP price can be derived easily.

SL is above the peak of the last wave.