Rising wedge pattern how to#
Rising wedge pattern series#

Thus, the resistance trend line must slope upward to validate this as a rising wedge pattern. A key detail of the rising wedge pattern is that the apex of the triangle needs to be pointed upward. You’ll need at least two swing low points to draw the support trend line.Īfter drawing the resistance and support trend lines, you should see a triangular shape that also looks like a wedge. Similarly, draw a support trend line covering the higher lows. A minimum of two higher highs is needed for the resistance line. The resistance trend line needs to cover the extreme high points of the pattern.

Rising wedge pattern series#

The rising wedge pattern carves a series of higher highs and higher lows. The rising wedge pattern’s shape resembles that of a slice of pizza, formed when two trend lines are converging. However, the interesting part is that a rising wedge can occur during a downtrend as a continuation pattern or during an uptrend as a reversal pattern. On the other hand, the falling wedge (descending) pattern has a negative slope, slanting downward and implying a rally forming nearby, making it a bullish pattern. The decreases in trading volume could suggest that sellers are consolidating their power for a bearish breakout despite the wedge captures the price action moving higher. The rising wedge (ascending) pattern in which the trading volume decreases as the wedge progresses signals the future falling prices or a breakout to a downtrend, making it a bearish pattern. Though the falling wedges have a similar shape, the only differences being the slope of the triangle and the implied result of the pattern. The rising wedge pattern can be interpreted as a bearish wedge as the low is overtaking the high in which the lower supporting trend line is steeper. The opposite of a rising wedge pattern is a falling wedge. What Is a Rising Wedge?Ī rising wedge is a bearish chart pattern consisting of two converging trend lines, with the first line connecting the recent lower highs and higher highs, and a second trend line connecting the recent lows. The resulting shape looks like a triangle that is angled upward.

Rising wedge pattern how to#

We’ll guide you through what the pattern looks like and how to use it for generating sell signals.

The rising wedge carves on all chart time frames and can develop quickly, making it difficult to spot in real-time.

The rising wedge can alert traders to an upcoming top and reverse prices, as the pattern contains a distinct formation. Due to its straightforward entry and exit guidelines, the rising wedge pattern is a favorite chart formation of many technical crypto traders.