Rising Wedge (RW)

The Rising Wedge is one of the most well known and easily recognisable patterns.  It is classified as a Bearish Continuation Pattern and has above a 50% success rate of meeting price targets.

Retracement is often to the 61.8 Fib Level but can go as deep as the 786 Fib Level, and the end of the Wedge can often be signalled by a Pin Bar and Divergence.

If in fact a Pin Bar prints, this can be the optimal entry point (A), with the stop below the prior Low of the formation. Breakout of the formation is generally when the pattern is 60-70% complete.

Alternatively, a second entry may present at the Break and Retest of the formation (B).

The initial target (or Measured Move) is the high prior to the formation commencing.

Key Features:

  • Price often rejects at the 618 Fib Level retracement
  • Look for Pin Bars/Hammers at rejection points
  • The initial target is the prior low
  • The secondary target is the flagpole length from point of breakout

Rising Wedge