Appropriate Strategies

If you detect the development of a rising wedge, especiauy if the wedge is being confirmed by other indicators, you might take these actions:
Sell at the upper boundaries of the wedge.
Sell on a violation of the lower boundary of the wedge.
Draw the trendlines forward to see the point at which the upper and lower boundaries would meet. If you are selling short because of a rising wedge formation, you might want to use that point as a stop. Cover if the market rises above the level of that point, which usually takes place with an upside run around and above the point of upper and lower hendline convergence.
If you detect the development of a declining wedge, especially if the formation is being confirmed by other indicators, you might take these actions:
Buy at the lower boundaries of the wedge.
Buy when the wedge’s upper trendline is penetrated.
Place protective stops at the convergence of the upper and lower trendlines.