This conflict of expectation creates an uncertainty that is not sustainable and usually resolves in the price outbreak. In a Rising Wedge formation the support line has a steeper slope than the resistance line, since sellers have more pessimistic view on the direction of the trend. In a Rising Channel pattern, the slope of support and resistance trend lines is the same, since buyers and sellers have the same level of confidence in the trend direction. The steepness of the Support/Resistance Trend Line indicates the buyers/sellers enthusiasm. The support trend line presents the buyer's sentiments, while the resistance trend line represents the seller's sentiments. Usually the breakout price's change (CD) approximately equals the height of the pattern formation. The height of the formation is the distance between the support and resistance lines at the beginning of the triangle formation (AB). This situation usually generates Divergence on long-term indicators. The Rising Wedge appears in a mature trend characterized by overbought long-term and short-term indicators. As with other triangle formations, the volume usually diminishes as the price rises and then increases during a breakout. In a downtrend, the Rising Wedge is considered as a continuation pattern. A Rising Wedge represents the loss of the upside momentum and has a bearish bias.Ī Rising Wedge is a bearish pattern that usually marks a reversal in an uptrend. Unlike the Rising Channel formation, where support and resistance lines are parallel, in a Rising Wedge formation the support line is noticeably steeper than the resistance line. The Rising Wedge pattern is valid when the price touched both the support and resistance lines alternatively at least tree times. The resistance trend line connects the formation's tops. The line that connects the bottoms of the formation represents a support trend line. A Rising Wedge pattern is a triangle formation with noticeable slant to the upside. A Rising Wedge (or Ascending Wedge) pattern is one of the most reliable, low-risk, and high-reward chart pattern.
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