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Rising Wedge

The Rising Wedge has two upward sloping trendlines. Despite rising prices within the wedge, this is a bearish reversal pattern.

2 rising linesRising Wedge: Rising convergence → Break bottom → Decline

Pattern Details

Category

reversal

Success Rate

72%

Average Move

-14%

Duration

2-4 weeks

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Lower Trendline: Slopes upward
  • 2
    Upper Trendline: Slopes upward (less steep)
  • 3
    Volume decreases during formation

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter short when price breaks below lower trendline
  • ✓
    Volume should increase on breakout
  • ✓
    Target = Height of wedge at widest point
  • ✓
    Stop loss placed above upper trendline
Trading Tips
  • Rising wedge in uptrend = Bearish reversal
  • Rising wedge in downtrend = Bearish continuation
  • Earlier breakouts tend to be more effective

Statistics

Breakout Statistics
Bullish Breakout28%
Bearish Breakout72%
Performance Metrics
Average Rise+8%
Average Decline-14%
Pullback Rate10%