The Wedges Pattern indicator for MT4 scans any pair for possible trend reversal patterns based on the wedge trading pattern.
There are two types of wedge trading patterns, the falling wedge and the rising wedge.
When the wedges pattern completes and price breaks out of the wedge, this creates a trade opportunity.
A bullish breakout trade opportunity occurs when price moves above the upper wedge trendline.
A bearish breakout trade opportunity occurs when price moves below the lower wedge trendline.
The EUR/USD 4-Hour chart below displays the Wedges Pattern Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Wedges Pattern MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade when price moves and closes above the upper wedge pattern indicator trendline.
Sell Signal: Open sell trade when price moves and closes below the lower wedge pattern indicator trendline.
Trade Exit: Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (Calculation period, Wedge Line Mode, High Low Bands Deviations) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Wedge pattern trading
Copy and paste the wedges-indicator.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)