1. had 5 clear waves, true wedge patterns
have 5 waves
2. had MACD divergence, true 5 wave wedge
patterns have MACD divergence, if no MACD divergence then most
likely you are still in a wave 3 NOT a 5
3. breakaway gap out of the wedge -
breakaway gaps are very bullish
that said a wedge like this I would
always buy in the wedge vs waiting for a break because many times
you will get a breakaway gap out of the pattern vs a clean break of
the trendline where you might want to buy but can't
remember natural gas inventories out in
about 30 min, big winter storm this weekend and nat gas has
obviously moved up on that but take some profits if you have
not
BOIL Wedge - Educational post
Posted by matt on 22nd of Jan 2026 at 09:59 am
BOIL 2hr nat gas - ProShares Ultra Bloomberg Natural Gas - Chart Link
this wedge was perfect here's why:
1. had 5 clear waves, true wedge patterns have 5 waves
2. had MACD divergence, true 5 wave wedge patterns have MACD divergence, if no MACD divergence then most likely you are still in a wave 3 NOT a 5
3. breakaway gap out of the wedge - breakaway gaps are very bullish
that said a wedge like this I would always buy in the wedge vs waiting for a break because many times you will get a breakaway gap out of the pattern vs a clean break of the trendline where you might want to buy but can't
Update: BOIL Wedge - Educational post
Posted by matt on 22nd of Jan 2026 at 10:06 am
$Commodity - Natural Gas UNG 2 - Chart Linkall the way back to the 200 day MA take note
remember natural gas inventories out in about 30 min, big winter storm this weekend and nat gas has obviously moved up on that but take some profits if you have not
https://tradingeconomics.com/calendar
It just slingshot out of
Posted by mla127 on 22nd of Jan 2026 at 10:00 am
It just slingshot out of there ...