00:00Imagine you're climbing stairs. Each step is higher than the last,
00:03but suddenly the stairs get narrow and weaker. What happens? You slip and fall.
00:09That's exactly the rising edge pattern in trading. Let's look at what it is.
00:14So this pattern forms when stock is moving up with higher rise and higher lows.
00:19But slowly the gap between highs and lows gets smaller like a wedge.
00:23This means buyers are losing strength and once the price break below the lower line,
00:27usually the stock falls. Example, price goes from 200 high, then 180 low, then 210 high, then 190 low.
00:34Looks like an uptrend, but once it breaks below 190, it signals a fall.
00:39The target is roughly the height of the wedge and stock loss is just above the last high.
00:43So volume is the key. If volume is slow while forming and spikes at the breakdown,
00:48the signal is stronger. So remember, rising wedge warning of a fall.
00:52If this helps, like and subscribe for more easy trading lessons.
00:55Investments in securities markets are subject to market risk. Read all related documents carefully before investing.
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