Wedge " pattern development " and explanation .....

[md2324]

Here is the question that the programmer put to me, and asked me to define.....

" We'll certainly need something tractable to build out your wedge algorithm. I.E. How is the wedge determined? Is there something mathematical that we can use? Can you describe why something is a wedge and other patterns are not? "

So I need some input please , on how other traders would describe in worded context,
the definition of a Wedge pattern that occurs on a chart ( Time frame of the chart irrelevant )

I am looking to have coded and developed ( Hopefully ) a system/strategy that will alert me to the Apex point for when a Wedge Pattern has developed AND a " Trigger " candle has formed and closed , right at the Apex of the Wedge ( Please see attached images that show these sort of wedge patterns WITH the trigger candle )

I define a Trigger candle , for a Long trade , as a Hammer candle or a full/big body Green candle, and for a Short trade, the Trigger candle at the Apex point of the wedge would be an Inverted hammer or a full/big body Red candle.

To me ,
a wedge is when there is a narrowing of a range in Price,
and that a " Strong " and reliable wedge occurs at New highs and at New Lows ,
as well as they occur at Strong Support levels ( Double, triple and Quadruple bottoms )
and at Strong Resistance levels ( Double, Triple and Quadruple tops )

Hopefully the attached charts will clarify what I am looking for

Thanks again for any and all help and input

 

[cashclay]

Here is the question that the programmer put to me, and asked me to define.....

" We'll certainly need something tractable to build out your wedge algorithm. I.E. How is the wedge determined? Is there something mathematical that we can use? Can you describe why something is a wedge and other patterns are not? "

So I need some input please , on how other traders would describe in worded context,
the definition of a Wedge pattern that occurs on a chart ( Time frame of the chart irrelevant )

I am looking to have coded and developed ( Hopefully ) a system/strategy that will alert me to the Apex point for when a Wedge Pattern has developed AND a " Trigger " candle has formed and closed , right at the Apex of the Wedge ( Please see attached images that show these sort of wedge patterns WITH the trigger candle )

I define a Trigger candle , for a Long trade , as a Hammer candle or a full/big body Green candle, and for a Short trade, the Trigger candle at the Apex point of the wedge would be an Inverted hammer or a full/big body Red candle.

To me ,
a wedge is when there is a narrowing of a range in Price,
and that a " Strong " and reliable wedge occurs at New highs and at New Lows ,
as well as they occur at Strong Support levels ( Double, triple and Quadruple bottoms )
and at Strong Resistance levels ( Double, Triple and Quadruple tops )

Hopefully the attached charts will clarify what I am looking for

Thanks again for any and all help and input

wow this is amazing information thanks for that!! But how often do you see wedges succeeding?

 

[wwatson1]

Some of those are flag's, a wedge is a flat top with rising lows or the reverse for a potential short

 

[learner2007]

a wedge is a flat top with rising lows

By your description I think you will find that to be what is commonly called an ascending triangle, IMHO.

 

[learner2007]

Here is the question that the programmer put to me, and asked me to define.....

" We'll certainly need something tractable to build out your wedge algorithm. I.E. How is the wedge determined? Is there something mathematical that we can use? Can you describe why something is a wedge and other patterns are not? "

So I need some input please , on how other traders would describe in worded context,
the definition of a Wedge pattern that occurs on a chart ( Time frame of the chart irrelevant )

I am looking to have coded and developed ( Hopefully ) a system/strategy that will alert me to the Apex point for when a Wedge Pattern has developed AND a " Trigger " candle has formed and closed , right at the Apex of the Wedge ( Please see attached images that show these sort of wedge patterns WITH the trigger candle )

I define a Trigger candle , for a Long trade , as a Hammer candle or a full/big body Green candle, and for a Short trade, the Trigger candle at the Apex point of the wedge would be an Inverted hammer or a full/big body Red candle.

To me ,
a wedge is when there is a narrowing of a range in Price,
and that a " Strong " and reliable wedge occurs at New highs and at New Lows ,
as well as they occur at Strong Support levels ( Double, triple and Quadruple bottoms )
and at Strong Resistance levels ( Double, Triple and Quadruple tops )

Hopefully the attached charts will clarify what I am looking for

Thanks again for any and all help and input

What is commonly called a wedge is simply a trend channel in which the return line tends to converge with the trend line. And while various price action may take place before the breakout, such is not required for the breakout to be valid, as I seem to understand you feel is. And, IMHO, you may want to review how to draw trend lines first. Also, I have seen many examples of attempts to program the drawing of something as simple as a trend line.
Haven't seen one yet that can do it any better than hit and miss, and with many more misses than hits!! Not to say that someone hasn't developed such a program though. And I think you will find that the wedge shaped moves in your examples that formed between highs and lows will not work out as well as normal wedges do in most cases.

Sorry to be so critical.