![]() Support Break: Bearish confirmation of the pattern does not come until the support line is broken in a convincing fashion. This creates an upper resistance line that fails to keep pace with the slope of the lower support line and indicates a supply overhang as prices increase. The advances from the reaction lows (lower support line) become shorter and shorter, which makes the rallies unconvincing. Each reaction low should be higher than the previous low.Ĭontraction: The upper resistance line and lower support line converge as the pattern matures. Lower Support Line: At least two reaction lows are required to form the lower support line. Each reaction high should be higher than the previous high. Upper Resistance Line: It takes at least two reaction highs to form the upper resistance line, ideally three. Sometimes the current trend is totally contained within the rising wedge other times the pattern will form after an extended advance. The rising wedge usually forms over a 3-6 month period and can mark an intermediate or long-term trend reversal. Prior Trend: In order to qualify as a reversal pattern, there must be a prior trend to reverse. Regardless of the type (reversal or continuation), rising wedges are bearish. As a reversal pattern, the rising wedge will slope up and with the prevailing trend. As a continuation pattern, the rising wedge will still slope up, but the slope will be against the prevailing downtrend. While though this article will focus on the rising wedge as a reversal pattern, the pattern can also fit into the continuation category. In contrast to symmetrical triangles, which have no definitive slope and no bullish or bearish bias, rising wedges definitely slope up and have a bearish bias. The Rising Wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. Any action writers and users take in respect of (a),(b),(c) and (d) above shall be their own responsibility, FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental violation of securities laws of any country, damages or loss arising out of the use of this information. The writers may or may not be trading in the securities mentioned.įurther the writers and users shall not induce or attempt to induce another person to trade in securities using this platform (a) by making or publishing any statement or by making any forecast that he knows to be misleading, false or deceptive (b) by any dishonest concealment of material facts (c) by the reckless making or publishing, dishonestly or otherwise of any statement or forecast that is misleading, false or deceptive or (d) by recording or storing in, or by means of, any mechanical, electronic or other device, information that he knows to be false or misleading in a material particular. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. Any action you choose to take in the markets is totally your own responsibility, FINANCIAL CHRONICLE™ blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. Trading or investing in stocks & commodities is a high risk activity. its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein. ![]() The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. ![]() The information contained in this FINANCIAL CHRONICLE™ have been submitted by third parties directly without any verification by us. » China takes front seat to lead SL’s debt restructuring process » How Banking Sector Shares fell in October 2023 » Dammika Perera - The Legend for the President » Focus on Government controlled entities » THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000) » Colombo Port City phase 2 development - US$ 1.5bn deal signed in Beijing ![]() » Semasinghe confident of striking staff-level deal with IMF soon » Share prices smash through 49,000 barrier at Pakistan Stock Exchange » First Capital Treasuries (FCT) and CFVF » Colombo Stock Market - Where are we Heading? ![]() » PRIME LANDS RESIDENCIES PLC (PLR.N0000) » The Kandy Hotels Company (1983) PLC (KHC.N0000) ![]()
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