Traders often use the Rising Wedge pattern as a signal to sell, with a price target set based on the distance from the widest part of the wedge to the support line. The pattern is confirmed when the price breaks below the support line on higher-than-average trading volume. Traders typically identify the Rising Wedge pattern by drawing trendlines connecting the highs and lows. ![]() The pattern resembles a rising wedge and is thus named accordingly. It is formed by a series of higher highs and higher lows, with the highs converging towards a resistance line at a steeper angle than the lows converge towards a support line. It helps in giving the trader a positive ratio of risk and reward in all cases.The Rising Wedge pattern is a bearish chart pattern in technical analysis that signals a potential trend reversal from an uptrend to a downtrend. Once it is identified, you can quickly locate the stop level for the trader. The stop level is identified from the top point of the pattern on the trending line of resistance. The two common ways of making an entry are either by waiting for a candle below the point of support trend before making an entry or entering the short position just when the support line is broken by the price irrespective of the candle close. There can be an entry point once the trend support line has been breached on the rising wedge. This is also referred to as divergence, which signifies that the uptrend movement is almost finished. One can observe the uptrend pattern by employing the volume tool on the chart that points at a fading volume in link to the ascending price prevalent in the market. Let’s consider the rising wedge pattern occurring as a continuation.
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