Definition
Rising Wedge forms when both support and resistance slope upward but converge. Despite the upward price movement, it's typically bearish as it shows weakening momentum. Breakdown usually leads to a significant decline.
Formula
Price Target = Lowest point of wedge or measured move down
Example
Price rises in a narrowing wedge from $40-$45 to $48-$50. Breakdown below the lower trendline (around $48) often targets the wedge's starting point ($40) or lower.
FAQ
What is Rising Wedge?
A bearish pattern with converging upward-sloping trendlines.
How do you calculate Rising Wedge?
A common formula for Rising Wedge is: Price Target = Lowest point of wedge or measured move down
Why is Rising Wedge important?
Rising Wedge helps investors evaluate chart patterns and make more informed decisions.