🔥 Learning of the Day 🔥
What is a Bearish Rising Wedge?
A chart pattern that shows prices going up in a Narrowing Range. But it is a warning sign that prices may fall soon. It’s called "BEARISH" because after this pattern, the price usually goes down.
📈 How does it Look?
✴️ Both upper and lower trend lines are going up.
✴️ The lines are getting closer, forming a wedge or triangle shape.
✴️ Price moves upward inside the wedge, but the movement gets weaker.
🔍 Why is it Important?
🔸It shows buyers are losing strength.
🔸Sellers may take control soon.
🔸Traders use this pattern to prepare for a price drop.
⏰ When is the Signal Confirmed?
🔸When the price breaks below the lower line of the wedge.
🔸This is called a breakout and it signals a potential downtrend.
🎯 Target Price (After Breakout)?
🔸Measure the height of the wedge (from top to bottom).
🔸Subtract that from the breakout point to estimate the downside target.
✅ Key Points to Remember:
👉 It's a reversal pattern (trend may change from up to down).
👉 Volume often drops inside the wedge, then increases after breakout.
👉Works best in an uptrend before the pattern forms.
