Rising Wedge
A Rising Wedge is a chart pattern within the context of an uptrend composed of two upward sloping and converging trendlines connecting a series of higher swing/pivot highs and higher swing/pivot lows.
Rising wedge (also known as the ascending wedge) pattern is a powerful consolidation price pattern formed when price is bound between two rising trend lines. It is considered a bearish chart formation which can indicate both reversal and continuation patterns – depending on location and trend bias. Regardless of where the rising wedge appears, traders should always maintain the guideline that this pattern is inherently bearish in nature.
HOW TO IDENTIFY A RISING WEDGE PATTERN:
~Establishing Downtrend.
~Rising wedge consolidation formation
~Linking higher highs and lower lows using a trend line assembling towards a narrowing point.
~Confirm divergence between price and volume may also be used.
~Look for break below support for short entry.
HOW TO TRADE THE RISING WEDGE PATTERN:
All Details are labelled in the Chart..
A Rising Wedge is a chart pattern within the context of an uptrend composed of two upward sloping and converging trendlines connecting a series of higher swing/pivot highs and higher swing/pivot lows.
Rising wedge (also known as the ascending wedge) pattern is a powerful consolidation price pattern formed when price is bound between two rising trend lines. It is considered a bearish chart formation which can indicate both reversal and continuation patterns – depending on location and trend bias. Regardless of where the rising wedge appears, traders should always maintain the guideline that this pattern is inherently bearish in nature.
HOW TO IDENTIFY A RISING WEDGE PATTERN:
~Establishing Downtrend.
~Rising wedge consolidation formation
~Linking higher highs and lower lows using a trend line assembling towards a narrowing point.
~Confirm divergence between price and volume may also be used.
~Look for break below support for short entry.
HOW TO TRADE THE RISING WEDGE PATTERN:
All Details are labelled in the Chart..