Rising Wedge Pattern
A bearish pattern with converging upward-sloping trendlines—higher highs and higher lows that narrow, typically breaking down.
Quick Answer
A bearish pattern with converging upward-sloping trendlines—higher highs and higher lows that narrow, typically breaking down.
What Is the Rising Wedge Pattern?
The Rising Wedge is a bearish chart pattern where price makes higher highs and higher lows within converging upward-sloping trendlines. Despite rising prices, momentum weakens as the range narrows. Rising wedges often appear as reversal patterns at the top of uptrends or as continuation patterns in downtrends. A breakdown below the lower trendline confirms the bearish signal.
How the Rising Wedge Forms
- 1Two upward-sloping converging trendlines contain price
- 2Higher highs and higher lows with decreasing momentum
- 3Volume typically declines as the wedge narrows
- 4Pattern completes with breakdown below lower trendline
How to Confirm the Pattern
Price Target Calculation
Measure the height of the wedge at its widest point and project downward from the breakdown.
Best Timeframes for Rising Wedge
How to Trade the Rising Wedge
- →Identify potential bearish reversals at trend tops
- →Time short entries on wedge breakdown
- →Set stops above the wedge upper trendline
- →Target measured move from wedge height
Common Mistakes to Avoid
Detect Rising Wedge Automatically
VaultCharts automatically detects Rising Wedge patterns on your charts. No manual analysis needed - the pattern is highlighted with entry zones and targets.