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Ascending Wedge Meaning

An ascending wedge, or rising wedge, is a bearish chart pattern formed by two upward-sloping but converging trendlines. The upper trendline connects higher highs, while the lower connects higher lows.

Unlike an ascending channel, the narrowing distance between trendlines indicates weakening momentum. Typical characteristics include:

Ascending wedges can appear as either reversal patterns in an uptrend or continuation patterns in a downtrend.

Traders usually look for a confirmed break below the lower trendline, accompanied by rising volume, to validate the signal. Stop-loss levels are commonly placed above the most recent high to guard against false breaks.

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