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PRICE ACTION TRADING | RISING WEDGE PATTERN šŸ”°

  • Writer: VasilyTrader
    VasilyTrader
  • Oct 25, 2021
  • 1 min read

Updated: Sep 16, 2024



Hey traders,


Rising wedge pattern is one of the most accurate price action patterns.

Being relatively simple to recognize, it is applied in various trading strategies.


ā­ļøThe pattern itself signifies the exhaustion of bulls.

Even though the asset keeps growing in value, the price action legs contract forming a narrowing channel.

Being stuck between two contracting trend lines , one serving as support and one serving as resistance, the price forms a wedge pattern.


šŸ””The trigger that we are looking for to sell the market is a bearish breakout of the support of the wedge (candle close below).

To not be caught by a false breakout, it is highly recommendable to wait for a bearish violation of the last higher low level as well.

Only then the wedge breakout is confirmed.


āš”ļøTrading the market aggressively, one opens a short position on spot just after the candle closes.

āš”ļøThe conservative trader will wait for a retest of the broken support of the wedge though for a safer entry.


āœ”ļøSafest stop will lie strictly above the highest wick within the wedge .

āœ”ļøInitial target will be based on the closest key structure support .


Learn to recognize this pattern and be disciplined to wait for its confirmed breakout. Only then a high trading performance will be achieved.


What price action pattern do you want to learn in the next post?


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