How to Using the Rising Wedge Pattern in Forex Trading

Rising wedges are popular reversal patterns that are predictive in nature and can give traders a clue to the direction and distance of the next price move. As a result, traders gravitate towards this chart pattern because of its simplicity in identification and application.Here’s how to spot a rising wedge on forex charts, how to trade them and some tips to help you with technical analysis.

The rising wedge pattern is a popular reversal pattern that is predictive in nature. A rising wedge (rw) appears regularly in the financial markets, it’s simplicity in identification and application makes it attractive to both amateur and experienced traders.

The rising wedge pattern is a popular price reversal pattern and quite useful for forex traders looking to capitalize on the next price move. Rising wedges are primarily bearish, but have a roughly 50% chance of turning into a bullish continuation pattern, confirming the counter-trend move initiated by the breakdown from the falling wedge pattern. In this article I will show you how to spot a rising wedge, what signals to look at for divergence and price exhaustion in order to time your entry and exit properly.

The rising wedge pattern is an easy to spot trend reversal strategy that is predictive in nature. The rising wedge can be a complex pattern for beginning traders and more elaborate sentiment based strategies may be used to help make decisions.

What is the rising wedge pattern? The rising wedge can be defined as a contracting triangle pattern. It is more of a trend reversal pattern using trend lines instead of resistance and support levels. The pattern can be found on any chart time frame and there are two variations: converging and diverging.

 Identifying rising wedges is not difficult. A rising wedge pattern is easy to spot on any forex chart. The shape of this pattern comes from the price action during a downtrend. In other words, as the price drops and falls below each candlestick, where bodies are progressively smaller and shadows are progressively larger, a rising wedge develops on the forex chart.

The rising wedge pattern is very popular among the technical analysis traders because it is pretty easy to identify, easy to confirm and profitable – especially in trending markets. This article is going to explain how can this pattern be spotted and what would you do once you’ve spotted it.

A rising wedge pattern is formed by a series of higher highs and lows in an uptrend or a series of lower highs and lower lows in a downtrend. The rising wedge pattern indicates that the prior price trend is slowing as the security approaches price resistance.

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