Rising Wedge
Definition
Both trendlines slope up but converge — rallies weaken into a top.
Psychology
Price keeps rising but with less and less energy — often a warning it will fall.
Real-life analogy
💡 Climbing stairs that get shorter and shorter — momentum running out near the top.
Expected direction
down
Entry / Stop / Target
Entry: On a breakdown below the lower trendline. · Stop: Above the recent high. · Target: Wedge height projected down.
Historical behaviour
Bearish in most contexts despite rising price.
Illustrative success rate
~60-68% breakdown · Medium reliability
Common beginner mistakes
- • Treating rising price as bullish here
Quick quiz — did you understand?
1. Is the Rising Wedge generally considered bullish, bearish, or neutral?
2. After a confirmed Rising Wedge, the expected direction is usually:
3. Which is a common beginner mistake with the Rising Wedge?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.