17.6%To entry+6.3%expected54.3%Hist. win rate
UALLong
Rising Wedge: Recognizing the Shape and Planning a Breakdown
A rising wedge has two upward-sloping boundaries that draw closer together. Learn what the narrowing range shows, how a downside trade is defined and what its historical record measures.
What Is a Rising Wedge Pattern?
A rising wedge forms when both highs and lows rise while the range between them narrows. The line under the lows rises more steeply than the line across the highs, bringing the boundaries closer together.
Imagine a stock still making new highs while its daily swings narrow from $6 to $3. These illustrative ranges show how a climb can fit inside a progressively smaller space. Traders watching for a decline wait for price to leave through the lower boundary.
The shape can occur during a rally or a recovery within a longer decline. The trend line basics guide explains how to connect the turning points.
How to Spot a Rising Wedge
Use these features to check the shape:
- Both the highs and lows rise.
- The lower boundary rises more steeply than the upper one.
- Separate turning points define both boundaries.
- The range narrows, with room remaining between the lines.
A rising channel has roughly parallel boundaries. Check that the gap between the lines decreases before treating the shape as a wedge.
Rising Wedge vs Falling Wedge vs Triangles
Compare the boundaries and the move preceding the consolidation to distinguish these related patterns.
A falling wedge has two downward-sloping boundaries, with the upper one falling more steeply.
An ascending triangle has a roughly horizontal upper boundary. Both boundaries rise in a rising wedge.
A bear pennant is a small pause after a sharp decline. A rising wedge can form without that preceding drop.
Is a Rising Wedge Bullish or Bearish?
Traders watch the lower boundary for a possible downward break. Until the trigger is reached, price may continue rising within the wedge or move above it.
An existing shareholder can use that boundary when reviewing an exit plan. A new short position is a separate decision with its own entry and risk; the next section explains the simulated short rule.
Entry, Safety Exit and Target
A short trade sells borrowed shares and later buys them back. It gains from a decline and loses from a rise; borrow availability and costs also affect whether a real trade is possible.
The following steps describe TradingPal’s historical simulation. Choose each step on the diagram to see where the price level sits. The risk/reward guide explains how the distance from entry to the safety exit becomes the planned risk, or 1R.
1.Entry
The simulation places its entry trigger below the lower boundary. The pattern must have been established on an earlier daily candle. The first eligible candle to reach the trigger can fill the order. If price gaps past it overnight, the simulation uses the worse opening price.
2.Safety exit
The planned invalidation level sits above the last bounce before the breakdown. The test closes the trade at the close of a later daily candle beyond that level. Price can overshoot it or gap past it, so the actual loss can exceed the planned 1R.
3.Target and final exit
Measure the pattern’s height at its widest point and project that distance from the entry trigger in the direction of the trade. This is the measured-move target. The bearish rule closes at the projected downside target.
The entry trigger sits below the lower boundary. After prior-day establishment, the simulation uses the first eligible fill; a gap can produce a worse opening price.
Checks Before Using the Pattern
- Check that the boundaries converge. Roughly parallel lines describe a channel.
- Check whether price has already reached the intersection of the lines or broken out and returned. Those events change the setup available to trade.
- Recalculate risk and potential reward if the entry price changes. A later entry can leave less distance to the target and more distance to the safety exit.
- Write down the exit rule before entering. The historical result assumes that rule was followed, including exits that lost more than the planned risk.
Historical Results for the Tested Rules
The table summarizes simulated trades using the entry and exit rules above. Check the direction, sample size and measurement period before comparing rows. These results update when a new historical run is published.
Read win rate together with the size of the wins and losses. A strategy can win half its trades and still gain or lose overall. Average R and profit factor help explain which happened; the track-record metrics guide covers the calculation.
The published pattern group includes shapes that passed later confirmation checks. That can affect which historical trades enter the sample, even when the simulated fill uses prices available at the time. The backtesting methodology explains this limitation and the portfolio assumptions.
Win rate
52.0%
Avg return per trade
+1.6%
+0.13R in risk units
Backtested trades
390
Profit factor
1.28
gross positive R ÷ absolute gross negative R
Historical results of the simulated strategy described above (2006-10-13 – 2026-09-08), refreshed nightly — not a prediction. How we test →
Winning and Losing Examples
The examples below are selected completed trades from the historical simulation. Compare the entry and exit in each, including the losing trades. Opening a symbol takes you to its current chart.
Selected for learning, with a mix of wins and losses where available. Closed in the 90 days ending Sep 11, 2026. This selection is not a win-rate sample.
ANFAbercrombie & Fitch
Winning trade · +36.5%
Opened Aug 3, 2026
Closed Sep 10, 2026
Open ANF’s live chart →
AOSA.O. Smith
Losing trade · −8.1%
Opened Jun 30, 2026
Closed Sep 10, 2026
Open AOS’s live chart →
BALLBall
Winning trade · +3.0%
Opened Aug 4, 2026
Closed Sep 10, 2026
Open BALL’s live chart →
DUOLDuolingo
Losing trade · −6.9%
Opened Aug 31, 2026
Closed Sep 10, 2026
Open DUOL’s live chart →
CBRECbre
Winning trade · +7.4%
Opened Aug 25, 2026
Closed Sep 10, 2026
Open CBRE’s live chart →
ELVElevance Health
Losing trade · −4.3%
Opened Sep 9, 2026
Closed Sep 10, 2026
Open ELV’s live chart →
Stocks with a Rising Wedge Pattern Right Now
Our screener re-draws these lines on 2,600+ symbols every night and flags each chart that fits the checklist above. The current matches appear below.
9 fresh rising wedges formed in the last 45 days across our growing universe of 2,600+ scanned symbols (18 charts tracked for this pattern in total). Scan updated Sep 11, 2026.
Live · from the latest scan on Sep 11, 2026
9 structures found. See example
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See the full offeringRising Wedge Pattern FAQ
Is a rising wedge bullish or bearish?
Traders commonly watch it for a downward break. The short rule waits for its trigger below the lower boundary, and an upward move can invalidate the plan.
What does a rising wedge in an uptrend mean?
It describes a rising range that is getting narrower. A break below the lower boundary is the event watched by the bearish rule.
What starts a rising-wedge breakdown trade?
Price must reach the trigger below the lower boundary after the pattern could be established on an earlier daily candle.
What is the target for a rising wedge?
Project the wedge’s widest height downward from the entry trigger. The tested bearish policy exits at that target unless its safety exit ends the trade first.
Do I have to short a stock to use a rising wedge?
You can use its boundaries to review the risk of shares you own. A short position involves borrowing and selling shares, then buying them back, and loses money when the price rises.
Keep Learning
Falling Wedge
A falling wedge has two downward-sloping boundaries that draw closer together.
Read the guide →
Ascending Triangle
An ascending triangle combines repeated highs near one price with rising lows.
Read the guide →
Bearish Pennant
A bearish pennant is a narrowing pause after a sharp decline.
Read the guide →
Educational content, not investment advice. Backtest statistics are historical results of a simulated strategy, refreshed nightly — they describe the past, not the next trade.