What is a Rising Wedge Pattern?
At the most basic level, Rising Wedge formations are bearish continuation patterns and look similar to triangle patterns (ascending triangle, descending triangle, and symmetrical) because of the converging trendlines( support and resistance) and narrowing price ranges(forms a cone).
Rising wedges slope up and have a bearish bias, they are usually found in down-trending markets.
However, they can become a reversal pattern if the currency pair price move above the upper (resistance) trendline.
How does a Rising Wedge Formation look like?
(1) Go short when the currency price falls below the lower trendline and place your stop above the upper trendline (resistance line) – continuation pattern.
(2) Go long when the currency pair price rises above the upper trendline and place your stop below the lower trendline – reversal pattern.
See more: Falling Wedge Pattern