xjo - weekend charting and chat -04 april 2014, page-22

Hi V8,

The target for a bearish rising wedge is a matter of contention.

Stockcharts, for example, say:

"There are no measuring techniques to estimate the decline – other aspects of technical analysis should be employed to forecast price targets."

Bulkowski on The Pattern Site has a different view:

"For downward breakouts, the lowest valley in the pattern (A) is the price target. Alternatively, compute the height from the highest peak (B) to the lowest valley (A) and then multiply it by the above “percentage meeting price target.” Add it to (upward breakouts) or subtract it from (downward breakouts) the breakout price (the point at which price crosses the trendline, shown in the Measure Rule figure to the right as a blue line for this downward breakout) to get a price target (C)."

More often than not the starting point of the wedge is taken as the target, e.g., from forex.tribe.com:

"The target price is given by the lowest point that resulted in the formation of the wedge."

Redbacka