Identifying chart patterns is easy, but setting proper risk-to-reward ratios on them is where most beginners fail. When trading rising wedge setups, placing your stop-loss just above the highest peak within the wedge while targeting the base of the formation gives you a great risk profile. It is a reliable reversal structure when backed by bearish divergence on the RSI.
Identifying chart patterns is easy, but setting proper risk-to-reward ratios on them is where most beginners fail. When trading rising wedge setups, placing your stop-loss just above the highest peak within the wedge while targeting the base of the formation gives you a great risk profile. It is a reliable reversal structure when backed by bearish divergence on the RSI.