What I look for in an ideal wedge is a structure whereby price action makes 5 touches to the wedge. This was a perfect example. A descending wedge is a bullish pattern. The beauty of this pattern is that it anticipates a target price at a specific time. The target is determined by creating a line between points 1 and 4, and extending it until it coincides in time with the apex A of the wedge.
In this example, price is currently at 0.6683, on Tuesday 6th July; the target price is 0.6900 late Thursday/early Friday.
My entry into the trade was based on a breakout on a 15M chart:
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The bars forming the breakout look abit spiky, but I wasn't looking for perfection here - this was an entry on a 15M chart, but based on a pattern on a 4H chart. My stop was set below the low of the wedge pattern, allowing for me to run this as a swing trade.
Here is the outcome:
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