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How do I trade the
Rising Wedge Pattern?
The Rising Wedge stock chart pattern can be either a reversal or continuation pattern. In an up trend it is considered a reversal pattern, but in a down trend it becomes a continuation pattern. This formation is bearish, no matter which direction the stock is trending. Look at the chart below.
This stock was in an up trend and began a series of higher highs and higher lows. When a trend line is drawn connecting the highs and another connecting the lows, they converge to form the wedge. The trade is made when price breaks through the lower trend line. This formation is found in all time frames, and can used as a stock or option strategy with a high degree of success.Stock Investment Advice Many traders trade the same stocks all the time. They get to know these stocks well, and they know how they react in different situations. Pick a few stocks and study them, watch how they react to changes in the broad market, and watch them in different time fames.
Learn to trade stock chart patterns and with just a handful of stocks you can have all the trades you'll need.
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