Stock market rising wedge

Bullish and Bearish Wedges - Stock Chart Patterns

I recently received a question from one of the attendees of yesterday's webinar recording available here. Here is the question:. I can't count the times over the years that I have seen first, Carl, and now you, identify a "rising wedge" pattern and then say the odds are that the expected outcome is a break DOWN from this pattern. Tonight, you show a "bullish rising triangle" This seems to be inconsistent. Notice that the top line is either horizontal or a slightly declining trendline.

This is the fundamental difference between a triangle pattern symmetrical or ascending and a wedge. These patterns are bullish with an expectation of a breakout. We see the execution of both in the example charts below. According to Thomas Bulkowski in his book, " Visual Guide to Chart Patterns " A great addition to your technical analysis library that you can purchase in the StockCharts.

This forms a higher low and the rising bottoms trendline. When overhead resistance is again met, they sell bringing the price back down but not all the way because others begin to jump in. This continues until price is squeezed toward the apex of the triangle.

Bulls now press their advantage and price breaks out. In simple terms, the bulls overpower the bears.

Now let's look at the bearish ascending wedge. Additionally the bottom trendline rising bottoms is rising. It's another battle between bulls and bears. The pattern is formed as each high is higher than previous and each low is successively higher as well.

The difference being, the angle of ascent is steeper on the rising bottoms line.

Bulkowski's Rising Wedge

Though the highs are successively higher, their angle of ascent is less steep which implies bulls are not able to push prices high enough to maintain a complete rising trend channel. Thank you to my webinar friend for bringing up this question and allowing me to elaborate.

I hope it clears up any confusion between the two patterns. Chris Buss April 23, at Joanne Cogan April 23, at The information provided by StockCharts.

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Tales From The Trenches: The Rising Wedge Breakdown

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Click here to see the live version. DecisionPoint What's the Difference Between an Ascending Wedge and an Ascending Triangle? Erin Heim April 23, at Here is the question: The chart below is a great example of both types of wedges executing with near perfection. Carl Swenlin is a veteran technical analyst who has been actively engaged in market analysis since Carl is a member of the Market Technicians Association. Erin Heim , Carl's daughter, helped him create and manage the DecisionPoint.

Erin is also a member of the Market Technicians Association.

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An excellent explanation, Thank You Erin! I have wondered about those triangles many times. The PMO will speak the Truth, and just remember that Volume is the Weapon of the Bull!!

Hi Erin, Thank you for this article Also, thank you for the book recommendation. I enjoy your webinar Free Charts ChartSchool Blogs Webinars Members FAQ Support Glossary Privacy Statement.