The rising wedge has two upward-sloping trendlines, but the support line rises faster than the resistance line, creating a converging shape. Though overall rising, it typically resolves bearishly with a downward breakdown.
Gradual exhaustion of buying pressure. Though the trend is up, each new high is smaller, showing diminishing bullish force. Bears are aggressively distributing at highs; supply is loosening, waiting for a downward breakdown.
Enter short on a high-volume downward breakdown below the support line (win rate 68%). Stop-loss above the wedge's last high. Target = wedge height measured down from breakdown point.
In an uptrend, usually signals a top reversal, but can also be a continuation pattern. A downward breakdown must be confirmed with volume expansion.