Rising Wedge is one of the most widely used price patterns in technical analysis. This pattern appears across multiple financial markets including stocks, forex, commodities, and cryptocurrencies, helping traders predict trend reversals or continuations. The rising wedge is formed by two converging upward trend lines, and its key value lies in providing traders with clear expectations of market behavior and trading decision basis.
Why is the rising wedge worth paying attention to?
The importance of the rising wedge in technical analysis is reflected in its multiple functions. First, it is a reliable indicator of trend reversal or continuation — when it appears after an uptrend, it usually signals a bearish reversal, while in a downtrend, it may indicate a bullish reversal. Second, the rising wedge offers traders clear entry and exit points, especially based on price action during pattern breakouts.
The practical value of the rising wedge also includes helping traders identify support and resistance levels. The support line is formed by connecting a series of higher lows,