I have explained about Rising Wedge Patterns on this Tutorial in detail.
Rising Wedges are bearish pattern and it generates bearish signal; Rising Wedge Patterns forms with Higher Highs and Higher Lows.
Rising Wedge pattern basically forms in two shapes ; If rising wedge pattern forms in an uptrend it will make reversal and if rising wedge pattern forms in a downtrend it will make continuation.
The higher highs and the lower lows along makes a trend resistance and trend support. When breakout occurs downside, price breaks the trend support line.
In rising wedge breakout occurs downside 60 to 70% of the time.
To confirm a true breakout, we can take help of Volume indicator. In a true breakout there will be big volume than usual.
We should use other indicators like MACD and RSI also to confirm that it will turn bearish before taking entry in a trade. (We can see MACD divergence, RSI Divergence and where the RSI is...)
Thank You;
Stay Tuned 👍, more tutorials and strategies coming!