© TCL AUTO WEDGES

The Reversal Trader’s Secret Weapon

Wedge patterns are favorites among institutional traders because they signal an exhaustion of the current trend and a buildup of pressure for a reversal. However, drawing them correctly requires experience. The TCL Auto Wedges indicator automates this process, scanning price action 24/7 to find valid converging structures.

Two Powerful Patterns

The indicator identifies two specific market structures:

• Falling Wedge (Bullish Reversal): A pattern characterized by lower highs and lower lows, but with contracting range. This indicates that selling pressure is fading and a bullish breakout is imminent.
• Rising Wedge (Bearish Reversal): A pattern with higher highs and higher lows, but contracting range. This signals that buying momentum is exhausting and a bearish breakdown is likely.

Smart Breakout System

Unlike static drawing tools, this indicator is a complete trading system. When price breaks out of the wedge, it activates:

1. Visual Signal: A Buy or Sell arrow appears on the breakout candle.

2. Take Profits: Three distinct targets (TP1, TP2, TP3) are plotted based on the wedge’s height.

3. Risk Management: A Stop Loss level is automatically calculated at the recent swing point to protect the trade.