Rising Wedge
A rising wedge is formed when price consolidates between upward sloping support and resistance lines.
This indicates that higher lows are being formed faster than higher highs. This leads to a wedge-like formation, which is exactly where the chart pattern gets its name from!
With prices consolidating, we know that a big splash is coming, so we can expect a breakout to either the top or bottom.
If the rising wedge forms after an uptrend, it’s usually a bearish reversal pattern. On the other hand, if it forms during a downtrend, it could signal a continuation of the down move.
Either way, the important thing is that, when you spot this forex trading chart pattern, you’re ready with your entry orders!
That means there are more forex traders desperate to be short than be long!
Ref: babypips . com
A rising wedge is formed when price consolidates between upward sloping support and resistance lines.
This indicates that higher lows are being formed faster than higher highs. This leads to a wedge-like formation, which is exactly where the chart pattern gets its name from!
With prices consolidating, we know that a big splash is coming, so we can expect a breakout to either the top or bottom.
If the rising wedge forms after an uptrend, it’s usually a bearish reversal pattern. On the other hand, if it forms during a downtrend, it could signal a continuation of the down move.
Either way, the important thing is that, when you spot this forex trading chart pattern, you’re ready with your entry orders!
That means there are more forex traders desperate to be short than be long!
Ref: babypips . com