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馃啎Difference Between Wedge and Triangle Pattern 馃憠 Easiest Explanation! - YouTube
Channel: Christopher Uhl - 10 Minute Stock Trader
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so you can see we broke out we had a ton
of volume holding above here shown by
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the volume profile
notice how we also had a ton of volume
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holding here which is essentially why we
broke out because
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supply dried up you broke out and then
you hit this huge amount of supply above
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which then acted as resistance
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this is the how to trade stocks options
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hey everybody this is jake and this is
another video in the technical analysis
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series and in this video we're going to
continue on with
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different types of patterns touching on
the falling wedge
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and the rising wedge or the descending
wedge
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and the ascending wedge they're known as
both so
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what's really interesting about the
falling wedges you can see here this is
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slv on the daily and a falling wedge is
essentially when you have
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lower lows and lower highs but you
continue to kind of
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coil in a tighter range here so you can
see here
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every time we really kind of you know
move
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to these areas you'll see here here's
one
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two three four
you can see how it's kind of coiling
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here we didn't actually get to this area
here
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but we retested it and then finally
broke out
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and so what's really interesting here is
generally these can be seen as a bullish
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setup because here you can see the
breakout
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now one thing that i want to mention
here is you know any
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pattern that you see or read about
there's no pattern that's guaranteed any
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of these patterns can break to the
upside if it's bearish
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um or break to the downside if it's
bullish so um what i want to really
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focus on here
is you know focusing on where you may
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find
resistance once you do break out and so
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that's something that i want to touch on
with the
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volume by price or the volume profile
and
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what i what i really want to focus on is
being able to
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anchor this volume profile from
different areas
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so notice i can move this to the right
or to the left
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and by doing this i can essentially kind
of
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anchor where i want the volume profile
to start and so
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um if you've heard of the anchored
volume weighted average price
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by uh brian shannon founder of alpha
trends
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this is similar to that except you're
anchoring the volume profile
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so if we wanted to anchor the v-wap as
well here
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you can see how well these work together
in conjunction with each other so you
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can see we broke out
we had a ton of volume holding above
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here shown by the volume profile
notice how we also had a ton of volume
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holding here which is essentially why we
broke out because
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supply dried up you broke out and then
you hit this huge amount of supply above
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which then acted as resistance notice
now how
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we anchored the volume profile and the
v-wap from here
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and how the price almost bounced right
off of it
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one thing that i want to mention about
the alert system on trend spider not
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only
for the falling wedge but for the
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uh the anchored view app is you can
easily create
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an alert at this line and you can have
some sensitivity around this line and
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capture
you know if we don't get exactly to that
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to that line below
and you can see this as i move it to the
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right left it gets bigger and smaller
and so anywhere in this purple area
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i'll be alerted any time let's say the
10 minute candle
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closes in this area and so that's how
the alert system can work if you want to
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use that
one thing i want to mention as well you
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know if you're watching a falling wedge
form
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you want to know anytime the price
breaks through this general area
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so what you can do is you can go ahead
and create an alert at this line as well
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if you wanted to
and let's say you only wanted to know
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when the price was going to break
through this line
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you so we'd say falling wedge
support breakdown and we do let's say
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you know you choose your expiration in
this case it's already happened so this
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is just an example
let's say we want to know five days from
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now if it breaks
same thing on the top here we'd create
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an alert and then all we need to know
is anytime the price breaks through
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either one of these lines
we know it's time to start looking at
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the price action in a little more detail
so this is an example of just creating
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an alert on both sides of a falling
wedge both the support and resistance
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and when the price breaks through one of
them you know it's time to start getting
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a little more involved
now one thing i do want to mention here
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is the raindrop
charts so in this case when we turn on
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the raindrop
you'll essentially be able to see you
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know what we weren't able to see
with a regular hollow candle so if i
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switch
this and split screen and go to hollow
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candles versus the raindrops
you'll see here that when we initially
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broke through this line
there was a wick here but we didn't
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actually close through
now if you compare that to the same
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candle and i'm just going to put a
little arrow here or a little uh
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square here you can see these are the
exact same candle
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the raindrop which is a volume based
candle
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is telling us that on the right hand
side which shows this big
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blob of volume that most of the volume
was focused above
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this red trend line during the second
half of the day
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so even though this wick is showing that
there was some sellers that came in
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this is showing us that those sellers
were quickly absorbed by buyers
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above this trend line so this is a way
that you can utilize the system in
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multiple different ways
but i do want to go over what a an
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ascending wedge or rising wedge is as
well
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and this is a good example here on spy
where we've got just a very you know
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defined
area where the price is slowly kind of
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getting closer and closer to each other
while we're still hitting higher highs
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and higher lows
these typically can sometimes be looked
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at as bearish
but these can easily break to the upside
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and spy is a great example of this
because there have been plenty of
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ascending wedges
along this move up and we've broken out
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through each one of them so far
so you're not always going to have you
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know a falling wedge that's always
bullish you're not going to have a
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rising wedge that's always bearish
but these are areas to kind of watch for
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to see how price reacts
same thing here you can go and create an
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alert on the resistance and the support
and whichever way the price breaks
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through you'll know okay maybe the
you know the price action is going to
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take to the upside or to the downside
based on what's triggered
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so this is a way that you can utilize
both um just
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your average uh you know alert
by looking at a breakthrough or a bounce
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through this crucial area
or getting more complex using the
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raindrops and looking at
you know whenever the the volume is
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above a specific line
so that is something that i really
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wanted to touch on today
if you do want to use our trend
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indicator we cannot necessarily find
a rising wedge and characterize it as
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that
but what we can do is we can use the
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trends and sometimes we will find
these different areas for us on the
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screen
without necessarily having to do much
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work on our end what this does is it
removes
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a lot of the bias that you can possibly
have on your
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chart as well as just making the system
look for these more mathematically
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strong and relevant lines for you
without having to
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put too much effort in so that is the
video on how you can use some of these
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different features on trend spider
with these rising and falling wedges
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hope this helped
have a great day and if you have any
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questions please comment below in the
comments section
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and please subscribe thanks so much i've
written a short guide on how you can use
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the triple stock profit system
it's the secret weapon every investor
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needs right now to change your financial
future
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and you can get it for free by visiting
triple stockprofits.com
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or in the links below also if you want
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you can get free access to the elite
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smarter hey if you like this video
let me know by leaving me a like below
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be sure to comment below with your
biggest takeaway from this episode
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and any suggestions you have for future
episodes and finally make sure you watch
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these other videos to help you trade
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next episode
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