Rising WedgeTechnical Analysis
A Rising Wedge is a bearish pattern that uses two highs to form an upwards sloping resistance line and 2 lows to form an upward sloping support line. The lines should be converging. It is important to know that the distance between the swing lows and the swing highs will narrow, even though price is rising. This implies weakening demand. When price breaks the lower support a short sale is signaled. A high risk entry is waiting for price to break the up sloping lower trendline and entering. For a low risk entry wait for the smallest or most recent trough before the break of the lower trendline to be broken before entering. The stop should be on the far side of the rising wedge, above the most recent swing high.
Volume will decrease as the pattern develops. The price will rise after the breakout to the bottom. The target is measured by taking the distance between the highest peak and the lowest trough and projecting that distance down from the resist line break.
Note that the rising wedge can also be a bearish reversal pattern. Rising Wedge Reversals are treated exactly the same as the continuation pattern. The only difference is the prior trend.
Did we help you? Vote with a Crypto-Donation!
Donate Bitcoin Cash
International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
Investment and Finance, Serviced by Amazon
A Concise Guide to Macroeconomics, Second Edition: What Managers, Executives, and Students Need to Know
A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market
Algorithmic Trading: Winning Strategies and Their Rationale
Alternative Investments: CAIA Level I (Wiley Finance)
Alternative Investments: Instruments, Performance, Benchmarks, and Strategies