How the pattern forms ?
The rising wedge is a bearish price pattern that begins wide the bottom and narrows as prices move higher and the trading range shrinks at the top.
While it is a channel formation, the loss of upside momentum on each high gives the pattern its bearish sign.
The series of higher highs and higher lows shows the bullish trend, which can make the pattern interpretation a bit difficult.
The last stage of pattern is simply ones as the range narrows.
At the initial stage the identification of pattern is not possible, it clears after the formation is near to complete.
As the range broken downside the downtrend or correction begins.
How to trade the Rising wedge ?
This is more reliable in the case many times support and resistance is tested. If the number is low then then the reliability is less.
The trade has to taken once the support and pervious low has broken with closing price and good volume.
In a short side trade the stop loss has to taken at the previous high of price and the target is t9he previous lows of the stock.
Once the target is taken one can move the target at lower lows and stop loss should be shift accordingly
The downtrend begins after the breakdown of support.
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