Price grinds higher between two upward-sloping lines that converge. Each push gains less ground, and the eventual break is usually to the downside.
How to identify it
- Higher highs and higher lows inside converging lines
- Lower line is steeper than the upper line
- Momentum weakens on each new high
Entry
Sell the close below the lower wedge line.
Stop loss
Above the last wedge high.
Target
The start of the wedge.
Invalidation
Price breaks out above the upper line with strength.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your rising wedge trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.