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Continuation patternsBearishReliability: medium

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.

Schematic illustration – idealized shape.

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

Entry

On a break below the lower (rising) boundary.

Target

The height of the wedge at its widest point, projected downward from the breakout.

Stop-loss

Above the last high inside the wedge.

Where & when – and 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.

Learn more in the academy