The rising wedge is a technical chart pattern used to identify possible trend reversals. A rising wedge chart pattern is formed by two converging trend lines when the stock’s prices have been rising for a certain period.
Rising Wedge Chart Pattern
It consists of two trend lines. You will see an uptrend before the rising wedge pattern. In this, you will get to see resistance at the top and support at the bottom.
You can also call it like this that on the upper side you get to see the resistance line and on the lower side you get to see the support line.
Next we will know how you have to take entry in it.
Trade Setup – Rising Wedge Pattern
In the rising wedge pattern, you will see a resistance line and a support line. As soon as you will see the breakdown of the support line.
Whichever candle has given a breakdown of the support line. You can take your entry in the next candle from it.
Whichever candle has given a breakdown of the support line. You can place your stop loss above its high.
If we talk about the target, then all the points are there from the first support to the first resistance. You can take the target of the same number of points after the breakdown.
Example 1 – Rising Wedge Pattern
In these examples, you are well explained about the Rising Wedge Pattern.
Example 2 – Rising Wedge Pattern
- Double Bottom Chart Pattern
- Inverted Head and Shoulder Chart Pattern
- Head and Shoulder Chart Pattern
- Bearish Engulfing Candlestick Pattern
- Bullish Engulfing Candlestick Pattern