Trader Ansem: Beware of Chasing Rallies in a Rising Wedge After a Decline

TechFlow reported on November 10 that, according to a chart shared by trader Ansem, a rising wedge after a sharp decline may be accompanied by declining volume, indicating weakening upside momentum.

The chart indicates that this pattern may lure traders into re-leveraging as prices make higher highs and higher lows; if prices fall rapidly, stop-losses near lows along the path may trigger selling. The top of the wedge may also coincide with higher-level resistance from before the prior decline.

Source: TechFlow