Torero, you are correct about the rising wedge. Wolfe goes deeper than the wedge though. What happens is that the rising wedge is rejected and the market creates a target for itself when the geometry gets skewed.
I am not the best instructor, but there is info out there on this pattern. If you are a visually oriented trader, this is a very valuable pattern to know.
Guarantee you the professionals see this, it is a contrarian pattern so creates a quick and powerful move.
The trick is to be able to see it developing as it happens.
Here is another guy who sees it and understands. Bill Wolfe doesn't use fibs, and I don't think you need to either.
http://blog.fxinstructor.com/august-...-room-summary/
Go to Bill Wolfe's site to learn the pattern, if you google you will find it.
If YM holds this morning's lows (and the 1-3 line), then this pattern is set to run. The target is a good 800 points higher. Closing above today's open would be a good first confirmation, above Friday's high would be another.
The weekly ER2 chart I posted shows the power of this pattern as it is completed! Target hit perfectly. In consolidation patterns you start seeing these all over the place...