Chart patterns
Rising wedge
Definition
Two rising, converging lines, the lower one steeper. Commonly read as bearish and confirmed by a close below the lower line.
Example
Suppose a stock makes highs at $50, $52 and $53 while its lows climb faster, from $45 to $48.50 to $51. Each new high adds less ($2, then $1), and the gap between the two lines shrinks from $5 to $2. The bearish read of the wedge is confirmed only if a candle closes below the lower line, say at $50.40; until then, the stock is still making higher highs.
Hypothetical numbers, for illustration only.
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