Wedge Pattern: Reversal & Continuation Pattern

The Ending Diagonal Pattern of Elliot Wave Theory = The Wedge Pattern In Classic Chart patterns

Basic Rules For The Wedge Pattern:
1. Consists of five waves
1-2-3-4-5
2. Each wave subdivides into a zigzag
a-b-c
3. Waves 1 and 4 overlap in price
4. Wave 1 is usually the longest
5. Wave 3 can not be the shortest


The "Wedge Pattern" can be found as a "Reversal Pattern" or a "Continuation Pattern"

A "Rising Wedge Pattern" created during an uptrend works as a "Reversal Pattern"
A "Rising Wedge Pattern" created during a downtrend works as a "Continuation Pattern"

A "Falling Wedge Pattern" created during a downtrend works as a "Reversal Pattern"
A "Falling Wedge Pattern" created during an uptrend works as a "Continuation Pattern"

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