A review of a Wedge Play

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.

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