Wedge Breakout Pattern Metatrader 4 Forex Indicator
The Wedge Breakout Pattern Metatrader 4 indicator is a technical tool that is employed during trading to aid traders determine whether a trend will continue or reverse in its path.
Interestingly, the indicator draws a rising and falling wedge, accompanied with arrows that take up the color of the wedge that it forms on.
These arrows are meant to highlight the probable direction in which price will go but just like everything in the forex market requires double confirmation.
However, a combination of one or more technical indicators just as highlighted below, plus price candlestick pattern ensures a flawless trend prediction with great accuracy.
- Just to get a better view of how the market is fairing, more attention should be paid to the colored wedge formed by the indicator.
- Generally speaking, the default setting on the indicator yields a red falling wedge and a blue rising wedge.
- The blue rising wedge formed after an uptrend yields a likely downtrend, while a blue rising wedge formed during a downtrend yields a continuation. Therefore, we can say a blue rising wedge implies a bearish chart.
- The red falling wedge is a bullish chart pattern. So, a red falling wedge formed during an uptrend yields a continuation trend, while when it forms during a downtrend, it is a reversal (uptrend) signal.
Feel free to explore the Breakout Pattern Forex indicator’s different parameters and settings to create your own personalized indicator setup.
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Wedge Breakout Pattern Forex Indicator Chart (GBP/NZD M30 Chart Example)
Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.
Finding Buy and Sell Triggers With The Wedge Breakout Pattern MT4 Indicator
Buy Signal: Go long when the Wedge Breakout Pattern MT4 indicator prints a red falling wedge after a bullish trend (continuation) or a downtrend (reversal).
When the light sea green and dotted red lines of the Stochastic Oscillator break and stay above the 50.00 horizontal level, it is a buy signal confirmation.
Sell Signal: Go short when the Wedge Breakout Pattern MT4 indicator prints a blue rising wedge after a bearish trend (continuation) or an uptrend (reversal).
When the light sea green and dotted red lines of the Stochastic Oscillator surge and stay below the 50.00 horizontal level, it is a sell signal confirmation.
Exit buy trade: Close all buy orders if while a bullish trend is running, the Breakout Pattern indicator prints a blue rising wedge. Else, the light sea green Stochastic Oscillator indicator dips below above the 50.00 level.
Exit sell trade: Close all sell orders if while a bearish trend is running, the Breakout Pattern indicator prints a red falling wedge. Else, the light sea green Stochastic Oscillator indicator breaks above the 50.00 level.
Tips: The Wedge Breakout Pattern MT4 Indicator is designed to easily establish wedges on the price chart, which makes it easy to spot reversal/continuation trends on different time frames.
The addition of the popular Stochastic Oscillator to the Wedge Breakout pattern MT4 indicator makes trend confirmation easy.
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Min Height of Splash, max bars before crossing, color of bull not active pattern, color of bear not active pattern, color of bull active pattern, color of bear active pattern, buy signal arrow color, sell signal arrow color, alert on pattern found, notification on pattern found, the number of bars to display.
More Info About This Indicator
Tradable Currency pairs: Any
Trading Platform: MT4
Time frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: trading pattern
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.