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 – 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.
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