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Rising Wedge Formation: Trend Reversal and Short Opportunity

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Rising Wedge Dynamics:

  • The chart shows a clear ascending channel, with the price respecting both the upper and lower trendlines over time.
  • While the trend remains bullish within the channel, the narrowing distance between the trendlines suggests a loss of momentum, a hallmark of a rising wedge.
  • This pattern is inherently bearish, as it signals that buyers are losing strength, and a breakout to the downside is likely.


Critical Buy/Sell Zone:

  • The marked buy/sell zone near the top of the wedge represents the point where the price reaches resistance and is likely to reverse.
  • This zone coincides with a key intersection of the upper trendline, the limits of the rising wedge, and potential overextension of the price.
  • The volume in this area will be a critical confirming indicator — if volume spikes while price fails to make significant upward progress, this would strengthen the bearish case.
sandroroeder
Technical IndicatorsTrend AnalysisWedge

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Technical IndicatorsTrend AnalysisWedge
sandroroeder

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.