As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
|
 44,200 or 41,750 by 01/01/2025 16,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 |
As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
| |
|
44,200 or 41,750 by 01/01/202516,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 | ||
Statistics updated 8/27/2020.
For more information on this pattern, read
Encyclopedia of Chart Patterns
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Rising wedges, especially for downward breakouts, are some of the worst performing chart patterns. Downward breakouts have unacceptably high failure rates and small post breakout declines.
Rising Wedge Chart Pattern
|
The above numbers are based on more than 1,400 perfect trades. See the glossary for definitions.
| Characteristic | Discussion |
| Price trend | Can be any direction leading to the pattern. |
| Shape | A narrowing and rising triangle shape. |
| Trendlines | Price bounces between two up-sloping and converging trendlines. |
| Touches | Price should touch (at a minor high or minor low) each trendline at least five times to outline a good pattern. That's 3 touches of one trendline and 2 of the opposite. |
| Duration | 3 weeks is the minimum duration, otherwise it's a pennant. |
| Volume trend | Trends downward 79% of the time until the breakout. |
| Breakout | Can be in any direction but is downward 60% of the time. |
| Confirmation | The pattern confirms as a valid one when price closes outside one of the trendlines. |
| Trading Tactic | Explanation | 
The Measure Rule
|
| Measure rule | For downward breakouts, the lowest valley in the pattern (A) is the price target. Alternatively, compute the height from the highest peak (B) to the lowest valley (A) and then multiply it by the above 'percentage meeting price target.' Add it to (upward breakouts) or subtract it from (downward breakouts) the breakout price (the point at which price crosses the trendline, shown in the Measure Rule figure to the right as a blue line for this downward breakout) to get a price target (C). | |
| Breakout | The average distance to an upward breakout is 67% of the way to the triangle apex (where the trendlines join). | |
| Confirmation | Wait for a close outside one of the trendlines before taking a position. | |
| Throwbacks and pullbacks | Throwbacks and pullbacks hurt performance. | |
| Weakness | Upward breakouts may show weakness two weeks after the breakout. | |
| Width | Wide patterns perform better than narrow ones (upward breakouts only). |
The above figure shows an example of a rising wedge chart pattern. Each trendline has at least three distinct minor high or minor low touches, sandwiched between two converging trendlines. The upward breakout from this rising wedge is unusual because of its rarity. A throwback follows the breakout in this example.
-- Thomas Bulkowski
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