Rising Wedge Breakdown

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Rising Wedge Breakdown

event Posted Jun 9, 2026 update Updated Oct 27, 2026

Identifying the Pattern: Rising Wedge


A rising wedge is characterized by two converging, upward-sloping trendlines:

  1. The Resistance Line (Top): Connects higher highs.
  2. The Support Line (Bottom): Connects higher lows.

Because the support line slopes upward at a steeper angle than the resistance line, the price gets "squeezed" into a tight apex. In technical analysis, this indicates that while buyers are still pushing the price up, their momentum is fading. It is structurally a bearish reversal pattern.

Plan

  1. Identify the price has making HH, HL.
  2. Observe MACD and RSI. Both should decline slowly
  3. All SMAs will get compressed
  4. Observe SMA, when the price ready to get out of the wedge, the price will go below them.
  5. The breakdown usually will go quite low, so set TP accordingly based on the support.