Reversal pattern · bearish bias
Rising Wedge pattern
A rising wedge has both boundaries sloping upward, with the lower line rising faster than the upper one. Price is still making higher highs, but each push gains less ground, which often precedes a break lower.
How to identify a rising wedge
- Higher highs and higher lows inside two upward-sloping lines.
- The lower line is steeper, so the range narrows.
- Each new high adds less distance than the last.
What confirms it
A close below the lower trendline.
What invalidates it
A strong close above the upper trendline, which breaks the narrowing structure.
How traders project a target
A common reference is the start of the wedge, the level where its first swing low formed.
Common mistakes
- Shorting a rising wedge while price is still respecting the lower line.
- Confusing a rising wedge with an ascending channel, whose lines are parallel.
- Expecting a large drop from a very small wedge on a low timeframe.
Where it appears
Can appear as a reversal at the top of an uptrend or as a bearish continuation inside a downtrend.
Frequently asked questions
Is a rising wedge bearish?
Yes, it has a bearish bias, despite price rising inside it. It confirms on a close below the lower line.
How is a rising wedge different from an ascending triangle?
An ascending triangle has a flat top. A rising wedge has both lines sloping upward and converging.
Does a rising wedge need lots of touches?
Ideally at least two touches on each line. Too few touches and the lines are guesswork.
Related chart patterns
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.