Technical Glossary / Chart Patterns
Rising Wedge
A narrowing advance: both bounds slope up, and the lower bound is steeper.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
A rising wedge slopes upward and converges. Highs are higher, but lows are rising faster, so the range tightens while price still climbs. The classic reading is bearish, a rally losing push, completed by a break of the lower line. In a downtrend a rising wedge can be a bear-flag style pause.
How to identify it
Two up-sloping lines that meet to the right. Price makes higher highs and higher lows inside a shrinking range. A parallel channel is not a wedge.
Bullish reading
A break above the upper line fails the bearish wedge. Do not fade a wedge that is still holding its higher lows.
Bearish reading
A close under the lower uptrend line is the bearish trigger. The wedge can unwind quickly because the late longs are trapped in a narrow rise.
Common mistakes
Drawing a wedge on two swings only, with lines that barely converge.
Limitations
Wedges are subjective. Small changes in which touches you include flip the slope. The break of a line you drew in advance is the test.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.