📘 Chart Pattern Lesson 7: Rising Wedge 📐
A classic bearish pattern that traps late buyers before the drop!
Commonly spotted in uptrending or overextended coins like $SOL, $DOGE, and $AR 🧨
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🔍 What Is It?
The Rising Wedge is a bearish formation where price makes higher highs and higher lows, but the upward move starts to lose strength.
Eventually, price breaks down from the lower trendline — often signaling a sharp drop. 📉
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📊 Key Features:
Shape: Two converging upward trendlines
Volume: Usually drops as the wedge tightens
Breakout Direction: Typically down
Appears In: Both uptrends (reversal) and downtrends (continuation)
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🎯 How Traders Use It:
Entry: After breakdown below the wedge
Stop Loss: Above the last swing high inside the wedge
Target: Measured from the widest part of the wedge projected downward 🎯
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✅ Quick Tips:
Rising wedge in coins like $SOL after strong rallies = caution 🚨
In downtrends, it signals bearish continuation
Works best with volume drop inside the wedge & spike on breakdown
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📌 Summary:
The Rising Wedge is a signal that buyers are weakening and a sell-off may be near.
If you see coins like $DOGE or $AR showing this pattern — it might be time to prepare for the drop. ⏳
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