Rising Wedge


What is Rising Wedge?

The rising wedge is a reversal pattern, as always the word "usually" comes into play.

Trading the Rising Wedge.

Nice one that took place in ARVIND MILLS … see the chart below. Self explanatory! We got higher pivot lows as ARV MILLS made new highs through 2003 and 2004.But newer highs in November 2004 and later was accompanied by lower volumes. This rising wedge took nearly a year in the making … The week ending Oct 14th, and we got our breakdown bar(indicated in the chart with a red arrow).

Look to short below the breakdown bar with your stops at where the green arrow is placed. Once it cracks, keep moving the stop down to the previous pivot high, so on so forth.