A rising wedge breakout is a technical analysis pattern in which prices of an asset break out of a rising wedge pattern, typically indicating bearish sentiment and a potential for prices to fall. This pattern is formed by two converging trend lines that slope upward, creating a triangle pattern. When prices break out of the triangle, it is often seen as a sign that prices will move lower. This is because traders expect the trend lines to act as support and resistance, and when prices break through these levels, they may assume that the trend is reversing. As such, traders may look to enter short positions in anticipation of the price continuing to fall.
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