Trading Misconceptions vs Facts: Rise Wedge Operation Guide

❌ Misconception
"The rising wedge equals a bullish signal; go long immediately after the pattern completes."

✅ Fact
True rise wedge operation must be confirmed:
1. Effective break below the lower edge (at least two K-line closing confirmations)
2. Volume coordination (increased volume when breaking down is more reliable)
3. Pullback test (if the rebound does not break the lower edge, it confirms the trend reversal)

💡 Correct operation
· Wait for a pullback after breaking below the lower edge
· Set the stop loss at the outer edge of the wedge
· A breakout above the resistance requires additional volume (otherwise treated as a false breakout)