Rising wedge means...

Rising wedge

Two convergent trend lines form the rising wedge chart pattern. The first trend line in the pattern connects the recent lows and highs.

The result is an upturned triangle. Unlike a rising wedge, a falling wedge falls.

Because the low has surpassed the high and the lower trend line is steeper, the rising wedge pattern is bearish.

The only differences between the falling wedges are the triangle's slant and the pattern's inference.

The rising wedge pattern predicts falling prices or a breakout to a downtrend, and trading volume drops as the wedge progresses.

Even if the wedge is still capturing price action and advancing, decreasing volume may indicate sellers are preparing for a negative breakout.

Causes and signs of rising wedge

The rising wedge pattern follows long trends. It's useful for trading cryptocurrencies.

The wedge pattern may signal a trend reversal if a crypto trend has advanced too quickly and far.

Buyer-seller imbalances cause major trends. Buyers and sellers price match. In a buyer-dominated market, the price must rise to attract more sellers.

If the price increase doesn't attract more vendors, prices will fluctuate. This quick adjustment creates strong uptrends that attract buyers who fear missing out.

After major crypto whales lose interest in buying, the price will correct, attracting FOMO buyers. Each high is followed by a correction, which attracts buyers.

A significant market correction is imminent due to the rising wedge pattern.

Rising wedge means...

Ascending wedges are bearish reversal patterns. After the pattern is complete, expect a market reversal.

A bearish reversal is imminent as the rising wedge pattern continues, reversing the upward trend.

A continuation pattern opposes a reversal pattern. Continued patterns interrupt the trend. After trends end, the market turns on reversal patterns.

Wedge and triangle patterns may confuse cryptocurrency traders. There are differences between the two that help traders predict the market's direction.

In wedge and triangle formations, resistance and support trend lines meet in the middle.

Wedge growth is up or down, while triangle growth is sideways or flat. In an ascending wedge, resistance and support trend lines converge.

Similarly, the falling wedge's resistance and support trend lines converge. Triangular pattern trend lines converge at resistance and support.

Resistance is horizontal or descending, and support is rising or flat. Wedge patterns reverse, while triangles continue.

Rising Wedge Confirmed

An ascending wedge pattern is:

overlapping waves

Highs and lows increased.

Upward-trending resistance

Uptrending support

Crossing resistance and support trend lines extrapolate

Seeing all these parts indicates an ascending wedge pattern.

These are just suggestions, not guarantees.

Ultimately

Rising wedges have a low risk-to-reward ratio, so technical traders like them. False rising wedge patterns are common.

Price/volume divergences and a failure below the 50% Fibonacci retracement can distinguish a natural rising wedge from a fake one.

This historical example shows that after a breakdown, the next goal is reached quickly.