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Rising Wedge Chart Pattern

Rising Wedge Chart Pattern

The Rising Wedge is a bearish chart pattern that signals a potential reversal in price after a steady upward move. It is one of the most reliable patterns for spotting trend exhaustion. Traders often use it to identify when an uptrend is weakening and prepare for a possible breakdown.

Structure of a Rising Wedge

Shape

  • Both support (lower trendline) and resistance (upper trendline) slope upward.
  • The slope of the support line is steeper than the resistance line, which shows that price is rising but losing momentum.
  • As price progresses, the range gets narrower, forming a “wedge” shape.

Volume Behavior 

  • Volume usually decreases during the wedge formation, showing weakening buying pressure
  • A sudden increase in volume often accompanies the breakdown below support.
  • Breakout Direction

Breakout Direction

  • In most cases, price breaks downward below the lower trendline, confirming the bearish reversal.
  • Rarely, it can break upward, but that is less common and less reliable.
  •  usually decreases during the wedge formation, showing weakening buying pressure.
Rising Wedge

How Traders Uses It

  • Entry: After the price closes below the support line with volume confirmation.
  • Stop Loss: Just above the last swing high inside the wedge.
  • Target: Often the height of the wedge subtracted from the breakdown point gives a good profit target.

Example :-  Netweb weekly timeframe chart

On the weekly chart, a Rising Wedge pattern was forming while the RSI was sloping downward. When the price broke down below the wedge trendline with an increase in volume, it confirmed the validity of the Rising Wedge pattern.

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