Rising Wedge
BearishReliability: MediumAlso called · ascending wedge
Price narrows upwards while the upward momentum weakens.
How to spot it
- Both highs and lows rise, but each new high adds less
- Volume declines
Why this shape forms
Price is still rising but each leg gains less ground. Demand is thinning, which is why this reads as a warning even while the chart goes up.
Where it actually means something
Late in an uptrend, or inside a bounce within a downtrend. Both tend to break down.
What else to check
Take a close below the lower line. If volume declined throughout the rise, the signal carries more weight.
This means you're wrong
If the lower trendline holds and volume returns, it's continuation up.
The mistake beginners make
Reading it as "it's rising, so it's good". This shape is closer to a warning of reversal.
Easy to confuse with
Different from a rising channel. A channel keeps a constant width; a wedge narrows. Constant width means the advance is still normal.
Real examples from the community
Patterns are probabilistic tendencies, not guarantees. This is not investment advice.