Brooks Wedge
Reversal

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.

Reversal15m, 1H3:1 R:RModerateExhausted Trend
3 pushes
Required
3:1
Typical R:R
Deploy This Strategy See Rules

Rules & Configuration

The full rule set, required indicators, suggested configuration, execution flow, and performance parameters for the Brooks Wedge Reversal setup.

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.

Common questions

What is the Brooks Wedge Reversal strategy?

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.

What's the pro tip for trading Brooks Wedge Reversal?

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.

What indicators does the Brooks Wedge Reversal strategy use?

The Brooks Wedge Reversal strategy uses the following indicators: Swing High/Low, RSI. These can be configured directly in AlgoBars AlgoBuilder.

What timeframe works best for Brooks Wedge Reversal?

The Brooks Wedge Reversal strategy is best traded on the 15m–1H timeframe. This can be adjusted based on your trading style and market conditions.

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