A three-push wedge. Three consecutive higher-highs (or lower-lows) forming a narrowing channel. signals trend exhaustion. The third push is typically weakest and marks reversal territory.
Indicators Used
Swing High/LowRSI
Rules
📉 Wedge Top Short
- Three consecutive higher-highs, each with smaller gain than previous
- Trend lines connecting highs and lows converge (narrowing wedge)
- Third push shows weakness: smaller body, upper wicks, less volume
- Bearish divergence on RSI ideal (RSI lower on 3rd push than 1st)
- Enter short on bearish reversal candle at 3rd push high
- Stop: above the 3rd push extreme
- Target: wedge base, often 3R from entry
📈 Wedge Bottom Long
- Three consecutive lower-lows with narrowing wedge
- Third push weakest, bullish divergence ideal
- Bullish reversal candle confirms at 3rd low
- Enter long, stop below 3rd push, target wedge top
3 pushes
Required
3:1
Typical R:R
💡 Pro Tip
Brooks emphasizes counting the pushes correctly. The first push establishes the trend, the second confirms, and the third is usually the exhaustion. Four or more pushes in a wedge often means you're misreading the structure. Step back and re-identify.