📍 Entry / Short Zone
Below Lower Line
Short on a candle close below the rising lower trendline as the wedge breaks down.
🛑 Stop Loss
Above Recent High
Place the stop just above the last swing high inside the wedge.
🎯 Price Target
Back to Wedge Start
Wedges often retrace fully — project toward the level where the pattern began.
⚖️ Risk / Reward
Aim for ≥ 2:1
Only take the trade when the projected target gives at least twice your risk.
Trading Rules — Rising Wedge
01Up but tiring. Both highs and lows rise, but the lows rise faster — the range narrows as momentum fades.
02Bearish bias. Despite the upward slope, a rising wedge usually resolves downward.
03Wait for the breakdown close. Enter on a close below the lower trendline, not a wick.
04Volume fades. Declining volume into the apex warns the trend is running out of buyers.
05Invalidation. A decisive close back above the upper line voids the short.
For educational purposes only. Not financial advice. Always manage risk with position sizing and never risk more than you can afford to lose.