General Stock Ideas

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Investor Education: Stock Chart Wedge Pattern

Learning stock chart patterns leads to increased profits. Investors and stock traders who expand their knowledge will continue to expand their bank accounts. In today’s investor education piece, we will go over a stock chart wedge pattern (triangle pattern). The wedge pattern alerts investors to consolidation in price. In other words, price action is being digested before the next big move. Will the major move big up or down? That is determined by whether price breaks up or down out of the wedge pattern.


Wedge patterns only form when you can clearly connect all the recent major highs and all the recent major lows. It creates a wedge or triangle pattern. This means price has to be making lower highs and higher lows. This is important because an investor must draw straight lines creating the wedge. The reason for the straight lines is to give a basis to the investor or stock trader of a definite breakout/breakdown point.


Note the diagram below: https://inthemoneystocks-4977.kxcdn.com/wp-content/uploads/2020/01/Wedge1.png


Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com