Jack Black and the Wedgie
Now back to stock trading. One of the common patterns within a stock chart is the Wedge. One of the key aspects to trading this pattern is where the “break” needs to occur for a potential up move (roughly 2/3 of the way into the wedge).
I am going to use CHRW (C.H. Robinson Worldwide) showing the Daily chart with a Wedge drawn, the “break” up through the top of the wedge, and then the pullback – back into the middle area of the Wedge apex:
This is a clean example of where you want the “break “up to occur, out of the wedge.