What is a rising (ascending) wedge pattern?

The rising (ascending) wedge pattern is a bearish chart pattern that signals an imminent breakout to the downside. It’s the opposite of the falling (descending) wedge pattern (bullish), as these two constitute a popular wedge pattern.

What is a rising wedge?

The rising wedge is a technical chart pattern used to identify possible trend reversals. The pattern appears as an upward-sloping price chart featuring two converging trendlines. It is usually accompanied by decreasing trading volume. Wedges can either form in the rising or falling direction.

How do rising wedge patterns work?

Those waves are filled with candlesticks that give you signs. When rising wedge patterns complete, the price breaks out, usually in the opposite direction the wedge was pointing. Rising wedges point up, so it breaks down when the price breaks out. Some rising wedges are vectored at steeper inclines than others, known as a reversal pattern.