How to trade Rising Wedge pattern
What is a rising wedge?
A rising wedge is a technical pattern, suggesting a reversal in the trend . This pattern shows up in charts when the price moves upward with higher highs and lower lows converging toward a single point known as the apex.
There are 4 ways to trade wedges like shown on the chart
(1) Your entry point when the price breaks the lower bound of the wedge, place your stop loss above the last peak, your target range is the distance between the upper and lower bound of the wedge at the start point.
(2) Your entry point when the price breaks the neckline of the double top pattern inside the wedge pattern, place your stop loss above the double top, place your target as same as shape (1)
(3) Your entry point when the price retest the lower bound of the wedge, place your stop loss above the last peak inside the wedge pattern, place your target as same as shape (1)
(4) a false breakout may occur in the rising wedge pattern, wait the price to go inside the pattern again and your entry point should be after breaking the last trough and your stop loss should be placed above the last peak that has been formed within the wedge, your target should be placed as same as shape (1).
We wish you the best of luck!
A rising wedge is a technical pattern, suggesting a reversal in the trend . This pattern shows up in charts when the price moves upward with higher highs and lower lows converging toward a single point known as the apex.
There are 4 ways to trade wedges like shown on the chart
(1) Your entry point when the price breaks the lower bound of the wedge, place your stop loss above the last peak, your target range is the distance between the upper and lower bound of the wedge at the start point.
(2) Your entry point when the price breaks the neckline of the double top pattern inside the wedge pattern, place your stop loss above the double top, place your target as same as shape (1)
(3) Your entry point when the price retest the lower bound of the wedge, place your stop loss above the last peak inside the wedge pattern, place your target as same as shape (1)
(4) a false breakout may occur in the rising wedge pattern, wait the price to go inside the pattern again and your entry point should be after breaking the last trough and your stop loss should be placed above the last peak that has been formed within the wedge, your target should be placed as same as shape (1).
We wish you the best of luck!
Signals and analysis derived from artificial intelligence models and experts
ChartDepth.com?utm_source=tradingview
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ChartDepth.com?utm_source=tradingview
play.google.com/store/apps/details?id=com.chartdepth.ai
apps.apple.com/gb/app/chartdepth/id1560762940
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