Rising Wedge
Also known as: Ascending Wedge
Two upward-sloping, converging lines. Despite the rising look, a rising wedge is usually bearish: upward momentum exhausts itself.
How it forms
Highs and lows rise, but the lows climb faster than the highs: the channel narrows upward. Volume declines until price breaks out downward.
How it is typically traded
On a break below the lower (rising) boundary.
The height of the wedge at its widest point, projected downward from the breakout.
Above the last high inside the wedge.
Where & when, plus the limits
Can appear as continuation (in downtrends) or reversal (at the end of uptrends), both bearish. Its counterpart is the falling wedge (bullish).
Related patterns
Education, not investment advice. Chart patterns describe probabilities, not guarantees. They fail regularly. Always manage risk with stop-loss and position size.
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