What is the pattern of the rising wedge?

The rising wedge pattern is a trend after a long period of time, after the weakening of the bears' power, the bears' forces are counterattacked by the bulls' forces, and the stock price is consolidating upwards for a long time. In this range, the overall stock price trend is upward, and the highs and lows of each wave are gradually raised in the range, and the consolidation range forms an upward trend;

This refers to the fact that over a period of time, the bottom and top of a certain branch are getting higher and higher, and gradually shrinking, connecting the points of the top and bottom, like a wedge.

It is a long-term trend, after the attenuation of the bears' power, the bears' forces have a long-term upward consolidation trend of stock prices under the counterattack of the multi-party forces.

Lesson 27 of the whitening course.

In the theory of morphological analysis, the upper and lower sides of the triangle in a wedge are inclined in the same direction, which is different from the triangle pattern. The upper and lower sides are inclined upward, which is called a rising wedge.

A rising wedge occurs in a big falling market, then rises and trades all the way narrowing. Rising wedges can be divided into two types: a continuation pattern or a reversal pattern. In the continuation pattern, the rising wedge tends to slope upwards until it meets the current downtrend.

The reversal chart will also be sloping upwards, but the deal will go up. Regardless of the type of graph, the graph is considered bearish.

The rising wedge usually lasts for three to six months and can provide investors with a warning that the market is reversing. The formation of an ascending wedge with at least two highs, with the highest of each point and the previous highest point forming a maximum resistance line; Similarly, with a minimum of two lows, the lowest of each point and the previous lowest point are connected to form a minimum support line.

In the rising wedge, the selling pressure is not large, but the interest of investors is gradually decreasing, although it rises, but each new upward movement is weaker than the previous one, and finally when the demand disappears completely, it reverses and falls. Thus, the rising wedge represents a gradual weakening of technical significance. When the lower limit is broken, it is a sell signal.

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In the whole process of the formation of the rising wedge, the trading volume continues to decrease, and the overall appearance of the ** characteristics of the price increase and volume reduction The rising wedge is sorted out to the end, and the majority is broken down to 0 map 350). Therefore, in essence, the rising wedge is just a wave in the process of stock price, and it is just a powerless struggle of the bulls after being hit by the bears continuously. So what should investors do when they see the rising wedge?

As a person, you should understand that the rising wedge is only a wedge and cannot change the balance of power. Therefore, those who hold the chips can take advantage of the ** to sell some ** and carry out weight reduction operations, and as soon as they find that the stock price falls below the lower line of the rising wedge, then they should no longer have illusions, and should immediately sell short and leave the market to avoid greater risks brought by the continued ** of shares. Those who hold coins must stand the test of the market, not be moved, believe in their own judgment, wait and see, and do not buy.

Speaking of which, some people may ask, does the rising wedge have to break down in the end, or not up? Not necessarily. However, in general, the possibility of an upward breakout is small.

Even if it is an upward breakout, it is not unprovoked, such as the gradual expansion of the volume within the wedge pattern, the release of a huge amount when the upward breakout, and so on. If investors can pay close attention to the volume changes within the rising wedge. Whether the rising wedge will break through downwards or upwards is roughly clear.

The chart above is an example of an ascending wedge, which starts with a falling market in mid-July and slowly follows a new low at point A and point B, forming new highs respectively. However, the Relative Strength Index (RSI) shows that the increase from point A to point B has diverged. When the sloping line meets **, the trend does not have enough momentum to push **up, and then it falls below the support line point C, and the trend continues.