Rising Wedge
A formation in which both boundaries slope upward but converge, with the lower boundary rising more steeply than the upper.
How it is identified
Test: higher highs and higher lows, with the line through the lows rising faster than the line through the highs
Unit
qualitative
In depth
The distinguishing feature is that price is still rising while the rate of advance decelerates, which is the observation the pattern encodes. Practitioners treat it as a weakening structure, though the two converging lines are a geometric description and the interpretation is not established by evidence. It is easily confused with an ascending channel, and the difference is entirely whether the boundaries converge — a judgement sensitive to which swing points are chosen. As with every formation here, the entry describes a shape without forecasting a direction.
Worked example
Highs of ₹520, ₹528 and ₹534 rise ₹14 in total while lows of ₹486, ₹502 and ₹518 rise ₹32. The range narrows from ₹34 to ₹16 even as price makes new highs.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Rising Wedge” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.