Rising Wedge is a bearish pattern signal. It consists of two converging trend lines. The trend lines are point upward. A bearish signal occurs when price breaks below the lower trendline. And it will continue the downtrend. The rising wedge is tighter than the other consolidation formation. Traders usually configure this consolidation in the long term, or the bigger time frame.
How to trade this pattern?
(1) Go long when the price rises above the upper trend line and place your stop below the lower trend line (support) line. (continuation pattern)
(2) Go short when the price falls below the lower trend line and place your stop above the upper trend line (reversal pattern)
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