While both trend lines in a rising wedge pattern are moving upwards, the lower trend line is steeper than the upper trend line. ![]() Each subsequent reaction low should be higher than the previous one. There should be at least two, ideally three, reaction lows guiding the lower trend line. ![]() The reverse applies for the reaction lows. Each reaction high should be higher than the previous one, resulting in a rising trend line. When trying to spot a rising wedge pattern on a candlestick chart, you should look for at least two, ideally three reaction highs, which guide the upper trend line. How to identify a rising wedge candlestick pattern? In a textbook rising wedge pattern, the price breaks below the lower trend line when the two trend lines are close to converging. Keep in mind that in addition to the price action, a textbook rising wedge is also characterized by declining trading volume. Let’s take a look at an example of what a rising wedge candlestick pattern looks like. Generally, the rising wedge is analyzed as a bearish chart pattern that signals a reversal in the market (the asset going from an uptrend into a downtrend). As the rising wedge progresses, the price range narrows. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.The rising wedge is a common price chart pattern that can be identified by converging trend lines and a series of higher highs accompanied by lower lows. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. ![]() IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. NO REPRESENTATION IS BEING MADE THAT ANY PERSON WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE BEING SHOWN. SIMULATED OR HYPOTHETICAL TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. ALSO, BECAUSE THESE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THESE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. UNLIKE THE RESULTS SHOWN IN AN ACTUAL PERFORMANCE RECORD, THESE RESULTS DO NOT REPRESENT ACTUAL TRADING. *CFTC RULE 4.41(b)(1)/NFA RULE 2-29 - SIMULATED OR HYPOTHETICAL PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. Failure to seek detailed professional, personally-tailored advice prior to making any investment could result in actions contrary to your best interests and loss of capital. Do not act on this information without advice from your investment professional, who you should expect to determine what is suitable for your particular needs and circumstances. It is intended for educational purposes only and NOT as individual investment advice. This website does not take into account your own individual financial and personal circumstances. Do not risk any money you cannot afford to lose. Trading requires risking money in pursuit of future gain. ![]() We emphasize that no information set forth on this website is an invitation to trade any specific investments. Users should consult with their own professional investment, tax, and portfolio advisers before making any decisions in investing and should independently verify all information on any sites or products by Free Trading, Inc dba Grok Trade. The past performance of any trading system or method is not necessarily indicative of future results. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. This website is neither a solicitation nor an offer to Buy/Sell any security. Do not risk capital you cannot afford to lose completely. You must know the risks and be willing to accept them to invest in the securities markets. Government Required Disclaimer - Stocks, ETFs, mutual funds, commodities, bonds, futures, options and any securities trading has large potential rewards, but also a large potential risk.
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