Rising Wedge Signals Sell from HighGold (XAUUSD) – H1 Complete Analysis (Rising Wedge + RSI + Volume)
On the H1 timeframe, Gold is showing signs of a distribution phase. During the recent session, price has formed a Rising Wedge pattern, which is considered a bearish reversal or bearish continuation pattern, especially when it appears near the end of a move.
The Rising Wedge structure is clearly visible, where price is making higher highs and higher lows, but both trendlines are gradually converging. This indicates that although price is moving higher, buying strength is weakening. In many cases, the market uses this structure to collect liquidity at higher levels before breaking down to the downside.
The RSI analysis further confirms this weakness. RSI is trading around the 57–60 zone, close to overbought territory, but it is not showing strong bullish continuation. While price continues to move higher, RSI is failing to follow with the same strength, sign ling loss of momentum and increasing the probability of a bearish move. This behavior is commonly seen in sell-from-high setups.
Volume behavior provides an important confirmation. As price moved higher within the rising wedge, volume gradually declined, which suggests that smart money is not aggressively buying at higher levels but is instead distributing positions. In such conditions, once the lower support of the wedge is broken, a strong bearish move accompanied by a volume spike is often seen.
When all three factors are combined Rising Wedge (bearish pattern), weak RSI momentum, and declining volume the sell-from-high bias on Gold H1 becomes stronger.
Trade Idea:
The preferred approach is to look for sell opportunities near the upper boundary of the wedge or recent highs, but only after proper confirmation, such as a bearish candle close or a clear break below wedge support.
Targets: TP1: Midpoint of the wedge
Main Target: 4300 zone (next liquidity)
Stop Loss:
Above the recent high or above the wedge structure (tight risk management)
