Rising Wedge Pattern

What the Rising Wedge pattern means

Price keeps grinding higher, but the narrowing range and slowing highs show buyers are running out of strength even as the chart still points up. That fading momentum makes a downside break the more common outcome, especially after an extended rally.

How the Rising Wedge is traded

• →Wait for a close below the lower trend line before shorting or exiting longs.
• →The target is often a move back toward where the wedge began.
• →Stop goes above the most recent high inside the wedge.
• →More reliable after a long uptrend or as a reversal at resistance.

Common mistakes

• ✕Staying long because price is still making higher highs inside the wedge.
• ✕Shorting before the lower line breaks.