Traders typically monitor the rising wedge for potential entry or exit points, taking special note of the pattern’s development over time.
The converging of these lines indicates that bullish momentum is waning, and it may signal to traders that a downward turn in prices is imminent upon the pattern’s completion. It is characterized by a narrowing price range between upward-sloping support and resistance lines, which shows that higher highs and higher lows are being formed at a diminishing rate. A rising wedge is a chart pattern found in the context of an upward-trending market and is often regarded as a bearish reversal pattern.
