Rising wedge formations are created when the following conditions take place:
The stock market (or other markets or individual investments) rises in price.
Trendlines drawn that reflect support lines rise at a constant angle.
Trendlines that reflect resistance, where prices turn down, can be drawn at a constant angle as well, but the angle of rise is less than the angle of the support trendline. The result is a converging channel.
Trading volume decreases as the formation develops. This is an important condition because declining volume during uptrends suggests a reduction in buying pressures.
The pattern tells us that although buying pressures are remaining ...