Who likes to trade chart patterns? The advantage of chart pattern trading is that the winning rate tends to be higher than trading solely relying on indicators.
This time, we will introduce the "Wedge" indicator for Metatrader that accurately detects and shows the wedge pattern on the charts.
As shown in the image above, this indicator draws various lines. The explanation of each line is as follows.
- Turquoise line-indicates a potential wedge pattern within the calculation period
- Yellow line-indicates a potential trend line within the calculation period
- The dotted lines are the standard deviation of the above (yellow) trend line
Tips for use:
The wedge patterns shown with this indicator can be used for various purposes. For example, if you break out of the upper and lower wedge patterns, you may want to trade in that direction. In addition, it is also possible to set stop loss and profit target orders at the upper and lower wedge patterns.
Also useful are the yellow trend line and the dotted line showing its standard deviation. For example, prices often stay within this dotted line. For this reason, if the price approaches this dotted line, you may want to look for contrarian trade opportunities.
- CalcPeriod - The period in which this indicator finds Wedge patterns and trend lines
- LineMode - Defines how lines should be depicted
Download the "Wedge" indicator from the button below
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.