Trading stocks education - Trading tactics & examples

Rising Wedge in a downtrend is a decline to a new low on strong volume, several weeks of narrowing, range-bound trade characterized by higher highs and higher lows with contracting volume, followed by a sharp break lower on strong volume.

Technical targets for rising wedges are derived by subtracting the height of the pattern from the eventual breakout level. The breakout level is the lower trend line of the triangle.

Rectangle Continuation           Price Channel Pattern