![]() The decrease in momentum shows a probability of a reversal in the market, and prices are prone to going down. However, the momentum will decrease inevitably. During this pattern creation period, the price of the asset will increase. ![]() In the Rising Wedge pattern, the upper line of the trend that is responsible for determining the hikes in prices rises at a slow speed compared to the lower line of the direction with time. The wedges are classified into two types- The Rising Wedge and the Falling Wedge.Īs the name suggests, a Rising Wedge pattern means the trendline is going upwards and converging at that moment. The eccentric quality of this chart is that the highs and lows of price coincide at a point to form a triangular shape. Wedge Pattern sustains for 10-50 trading periods and is frequently visible on any asset’s price chart. However, a rookie must learn and understand about it to comprehend the Wedge Pattern. Additionally, these wedges provide answers without much hassle as they are easy to read and interpret. Wedges are prominent in all trading communities and are trusted by the masses of traders too. One of these patterns is also called the Wedge Pattern. ![]() Hence, technical traders make use of different chart patterns and tools to indulge in profitable trading sessions. Trading is not a game of guesses as a trader, you need to make informed decisions that give you excellent returns on your funds. Pros and Cons of Falling and Rising Wedge.Identifying beneficial trade exit points.Identifying valuable trade entry points.Fibonacci retracement and extension levels.MACD or Moving Average Convergence Divergence.Moving average, divergence indicators, and momentum.How to enhance the reliability of the rising and Falling Wedge patterns in the market?.Understanding the Falling Wedge pattern.Stage 2: The intersection or convergence phase.With the use of geometry and shape recognition.How to recognize the rising and falling wedge patterns?.
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