Reversal Patterns · Bearish
Rising Wedge
Price makes higher highs and higher lows inside two rising lines that converge.
The range tightens as price rises. A bearish reading waits for a close below the lower line.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- Highs and lows are both rising.
- The trendlines converge.
- The bearish example uses a close below the lower line.
Market context
A rising wedge can be a rally that is losing push, or a pause in a larger decline. The close through the boundary is the event.
Entry example
An example entry is the close below the lower boundary.
Stop-loss example
An example stop is above the last high inside the wedge.
Target example
An example target is the start of the wedge.
Common mistakes
- Shorting while price is still respecting the lower line.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.