What is a rising wedge?
A rising wedge pattern is a bearish chart formation that signals either a potential trend reversal or the continuation of a downtrend. It occurs when the price consolidates within two upward-sloping, converging trendlines, indicating weakening momentum.
Key Characteristics of a Rising Wedge:
1. Higher Highs and Higher Lows – The price moves upward, but the momentum gradually weakens.
2. Converging Trendlines – Both the upper and lower trendlines slope upward while moving closer together, suggesting a loss of strength in the trend.
3. Breakout Direction – The pattern typically breaks below the lower trendline, confirming a bearish reversal.
How to Trade a Rising Wedge:
• Wait for Confirmation – A breakdown below the lower trendline with increased volume confirms the pattern.
• Set a Target – Measure the height of the wedge and project it downward, often aiming for the starting point of the wedge.
• Use a Stop-Loss – Place a stop-loss just above the recent swing high to manage risk.
Rising wedge on GALA and ARWEAVE
There will be some opportunities with the rising wedge pattern on GALA Games and ARWEAVE. With the projected downside move in BTC and ETH, these falling wedges could play out perfectly. The stop-losses are around 5%, so make sure to manage your risk accordingly.
Keep an eye on both setups for possible trade opportunities in the coming hours/days!
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A rising wedge pattern is a bearish chart formation that signals either a potential trend reversal or the continuation of a downtrend. It occurs when the price consolidates within two upward-sloping, converging trendlines, indicating weakening momentum.
Key Characteristics of a Rising Wedge:
1. Higher Highs and Higher Lows – The price moves upward, but the momentum gradually weakens.
2. Converging Trendlines – Both the upper and lower trendlines slope upward while moving closer together, suggesting a loss of strength in the trend.
3. Breakout Direction – The pattern typically breaks below the lower trendline, confirming a bearish reversal.
How to Trade a Rising Wedge:
• Wait for Confirmation – A breakdown below the lower trendline with increased volume confirms the pattern.
• Set a Target – Measure the height of the wedge and project it downward, often aiming for the starting point of the wedge.
• Use a Stop-Loss – Place a stop-loss just above the recent swing high to manage risk.
Rising wedge on GALA and ARWEAVE
There will be some opportunities with the rising wedge pattern on GALA Games and ARWEAVE. With the projected downside move in BTC and ETH, these falling wedges could play out perfectly. The stop-losses are around 5%, so make sure to manage your risk accordingly.
Keep an eye on both setups for possible trade opportunities in the coming hours/days!
Thanks for your support.
- Make sure to follow me so you don't miss out on the next analysis!
- Drop a like and leave a comment!
Lets chat in the comment section. See you there :)
Trade active
Arweave broke down his rising wedge. At this moment Arweave is retesting its old supportline as resistance. At this level we could open a short positions. The only conformation that makes it more risky is the average volume by breaking down. It is not a huge volume spike but average.
So if you take this trade you have to watch out risk management. Do not risk more than 1% of your account on this trade while it is a little bit more riskier.
Lets see how this will play out. I'll keep you updated if anything changes and if/when Gala breaks down his rising wedge.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.