Forex Chart Formation Patterns_13. Learn Forex Rising Wedge Pattern

Lesson 13: Learn Forex Rising Wedge Pattern Rising wedge is a bearish formation pattern where price makes higher highs and higher lows but the support line is steeper than the resistance line. Every new high is created with the loss of momentum and is signaling underlying weakness. There are two basic variations to this pattern. The first is a bearish reversal and it looks like this: In an up-trend, the price is making higher highs and higher lows, but as the bull trend loses steam, the price loses momentum and struggles to push prices significantly higher until the bearishness prevails and price finally breaks to the downside. The second variation is a bearish continuation pattern. It forms after a strong down-trend, as the price retraces higher. As the main trend is still bearish, there is no momentum behind the bullish moves and eventually, the price breaks to the downside to resume the bear trend. The price target for this formation should be the height of the wedge, measured down from the breakout point.