Ascending bearish wedge3/10/2024 The two common ways of making an entry are either by waiting for a candle below the point of support trend before making an entry or entering the short position just when the support line is broken by the price irrespective of the candle close. There can be an entry point once the trend support line has been breached on the rising wedge. This is also referred to as divergence, which signifies that the uptrend movement is almost finished. It is formed by two diverging bullish lines. ![]() One can observe the uptrend pattern by employing the volume tool on the chart that points at a fading volume in link to the ascending price prevalent in the market. 45.1k 0 What is an ascending broadening wedge An ascending broadening wedge is a bearish chart pattern (said to be a reversal pattern). The ascending broadening wedge is typically considered a bearish pattern, as it often indicates that the price will reverse after the pattern is completed. Let’s consider the rising wedge pattern occurring as a continuation. You can interpret such an occurrence as an opportunity to enter long positions. If this pattern occurs during a downtrend or bearish market conditions, and the price of the stock moves above the upper trendline, it indicates a potential bullish reversal. Keep an eye on the break occurring under the support point for making a short entryĪ rising wedge pattern can be observed both as a continuation and a reversal pattern, as has been mentioned already. The ascending broadening wedge pattern can indicate the forthcoming trend reversal. The Rising Wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows.Confirmation of the overbought signals by using technical tools such as oscillators.Look for the divergence among price and volume by employing the volume function (You can use MACD as well). ![]() A link of the lower lows and higher highs with the help of the trend line that forms towards the narrow point.The formation of a rising wedge consolidation can be observed.
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