Rising Wedge Pattern
Learn to recognize and trade a rising wedge pattern through interactive charts.
What is a rising wedge pattern?
A rising wedge, also known as a bearish wedge, is indicative of slowing momentum in an uptrend. It suggests that the current uptrend could end, even as prices make higher highs.
Download our free chart patterns PDF for a guide to 20 classical chart patterns with over 100 interactive charts, also on TradingView.
A rising wedge pattern usually forms over 3 to 6 months.
In a rising wedge pattern, prices move between upward sloping converging support and resistance lines.
- A Rising Wedge happens in an uptrend.
- Prices should make higher highs, bounded by an upper resistance line. They should touch resistance on at least two occasions, and ideally more.
- Prices should also make higher lows, bounded by a lower support line, also called the pattern’s trendline. They should touch support on at least two occasions, and ideally more.
- Support and resistance lines converge towards one another, as the distance between highs and lows becomes noticeably tighter. This points to rising selling pressure.
Look for falling trading volumes as the pattern builds, as evidence that buying interest is waning.
Rising wedge trading tips
This pattern is complete once price breaks convincingly below the trendline. The breakout need not happen on rising volumes, but an expansion would provide a bearish confirmation. Some traders wait for an unsuccessful retest of the trendline before opening a short position. This means waiting for confirmation that the prior trendline now acts as resistance. For example, you could want to wait for several daily closes below trend to confirm the trend reversal.
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I'm Stéphane, a trader and an entrepreneur. My mission with TrustedBrokers is to help you find the right broker for you, whether you're a beginner or a pro. I've personally used and tested the brokers on our service, opening and funding real-money accounts, contacting customer service and placing trades. I started my career in investment banking in London.