Source: https://forexiapro.com/signature-trade/rising-wedge-breakout/ # Rising Wedge Breakout: How the #SignatureTrade Turns the Crowd's Favourite Pattern Around Dylan Forexia14 November 20266 min read A rising wedge breakout looks like a continuation to the crowd and like a signal to the books, which read the wedge as bearish. The #SignatureTrade is Forexia's name for a setup built on that moment. It is three conditions in order, and the wedge is only the first. This page says what each one is, shows what a wedge does on real candles, and is honest about the day we have not got. [![Rising wedge breakout in the #SignatureTrade: a wedge, a range, a break, then the turn](/seo/signature-trade/signature-trade-wedge-range-window-diagram.webp)](/seo/signature-trade/signature-trade-wedge-range-window-diagram.webp) Diagram: a wedge, a clear range, a break past the high, then the turn. The real days are below. The definition, with one real day, is in the glossary: [what the #SignatureTrade is](/glossary/signature-trade/). This page is the explanation behind it, and the hub for everything about the setup is [the #SignatureTrade](/signature-trade/). ## What is a rising wedge breakout in the #SignatureTrade? It is the break that ends day one. A rising wedge is two rising lines that converge, with the lower line steeper. The textbook says price will break the lower line and fall. In the #SignatureTrade the pattern is read differently: it is the shape that makes a crowd confident. A rising wedge into a high is the sell version. A falling wedge into a low is the buy version. A triangle, or anything of that family, also counts, but only if it looks like one. The shape is judged by eye, mostly on the 15-minute and 1-hour charts, and it is never forced. If you have to draw it to make it fit, it is not a wedge, and the day is not a #SignatureTrade. ## What are the three conditions, and why in that order? They arrive in order, and the order is the setup. 1. **Day one shows a wedge.** The crowd sees a pattern it has been taught. The orders it implies, entries and stops, rest at the lines and past the high. 2. **Day two shows a clear Asian range.** The more consolidated, the better. It is [the Asian Box](/glossary/the-asian-box/): where the night leaves stops either side. 3. **The break goes through both.** Price goes through the wedge and through the previous day's high, usually at the London open, in what we call [the Window of Opportunity](/glossary/the-window-of-opportunity/). We read that break as the point where the crowd believes the trend will continue. The course's own words for the third are "enter at the peak, when everyone believes the trend will continue". On this page that is a description of where we look, not a rule for what to do. ## What does a rising wedge do on real candles? Gold made one on Tuesday 14 April 2026. Its highs were 4789.82, 4817.60 and 4843.02 and its lows 4761.90, 4790.99 and 4830.61, so both lines rose and the lower one rose faster. The 16:00 New York candle closed at 4842.45, under the lower line and still 12 pips above its last low. On gold we count $1 as 1 pip. [![Rising wedge breakout on gold, 14 April 2026: the lower line broken at 4842.45, 12 pips above the last low, then price runs to 4871.16](/seo/price-action/gold-rising-wedge-14-april-2026.webp)](/seo/price-action/gold-rising-wedge-14-april-2026.webp) Gold, 15-minute candles, Tuesday 14 April 2026. The 16:00 New York candle closed under the wedge's lower line. Price then went higher. Real candles. Price did not fall. It ran to 4871.16 and took the stops above the high. We show this day as a wedge only: this page does not call it a #SignatureTrade, because it has not been read for the Asian range and the break that must follow. It is a picked day, so it proves nothing alone. The count does: of 184 rising wedges on seven dollar majors and gold from 6 April to 1 October 2026, 140 broke down, 39 broke up and 5 did not break, and in only 16 of the 140 had price closed under the last low when the line broke. In the other 124 the line had caught up with price. [Which way a rising wedge breaks](/price-action/which-way-does-a-rising-wedge-break/) has the whole table. ## What does the break past the previous day's low look like? The best real day we have is the mirror, and it is honest about the first condition. On USD/CAD, Wednesday 5 August 2026, price sold off to a low of 1.40045 at 14:15 and then drifted in a narrow range. We cannot draw two converging lines around it, so we do not call it a wedge, and by our own rule the day is not a #SignatureTrade. [![USD/CAD on 5 August 2026, 15-minute chart: a sell-off to 1.40045 at 14:15, then a narrow range, not a wedge](/seo/signature-trade/usdcad-day-one-not-a-wedge-5-august-2026.webp)](/seo/signature-trade/usdcad-day-one-not-a-wedge-5-august-2026.webp) USD/CAD, Wednesday 5 August 2026. The day falls to 1.40045 at 14:15. We do not call this a wedge. Real 15-minute candles. It still shows the window. On Thursday 6 August the Asian range was 15 pips, 1.40022 to 1.40172, and easy to see. The first London candle to trade under Wednesday's low was the one at 06:15, which reached 1.40028. Price went on to 1.39901 at 08:00, the New York open. The 08:45 candle closed back over the low at 1.40065, and price reached 1.40375 at 11:30. We read the move under the low as the stops under it being filled, and the move back as what that funded. [![USD/CAD on 6 August 2026: a 15-pip Asian range, then price trades under Wednesday's low of 1.40045 from 06:15, reaches 1.39901 at 08:00 and closes back over it at 08:45](/seo/signature-trade/usdcad-previous-days-low-window-6-august-2026.webp)](/seo/signature-trade/usdcad-previous-days-low-window-6-august-2026.webp) USD/CAD, Thursday 6 August 2026. First trade under Wednesday's low at 06:15, the day's low of 1.39901 at 08:00, a close back at 1.40065 at 08:45. Real 15-minute candles. Medium-impact US releases came at 08:30 (jobless claims, productivity and unit labor costs). The 08:30 candle was quiet, 1.39982 to 1.40015, and the turn came on the next one. There was no high-impact release. We have not yet put a day on the site that shows all three conditions together, so we do not claim one. ## Where does this page stop and the next one start? This page is about the shape and the idea. It answers what a rising wedge breakout is, why the #SignatureTrade is not the same thing, and what a wedge does on candles. The order of the three conditions, and what changes if one is missing, is in [wedge pattern trading](/signature-trade/wedge-pattern-trading/). The level the break goes through, and how often price closed back, is in [the previous day high breakout at the London open](/signature-trade/previous-day-high-breakout-london-open/). Each page keeps to its own question so that none repeats another. A reader who wants only the textbook pattern, with no setup around it, will find it in our [guide to price action](/price-action/). The reader who wants the stops in that picture, and who put them there, should keep going on this one. ## Who is on each side of the break? Three seats see it differently. - **The retail seat.** It has been taught that a rising wedge breaks down. It sells the lower line, or buys the break up through the previous day's high. Either way its stop is at the high or under the low. - **The market maker's seat.** It sees the same two rows of stops and orders resting past the previous day's high. That is where an order can be filled in size. - **The observer's seat.** Ours. It sees a break that arrives when the crowd is most sure, and waits to see whether price closes back inside. That is a reading, not a fact the chart proves. ## Does the bot trade the #SignatureTrade? Not all of it. The live bot automates the induction and the reversal. It does not read the wedge itself: its test for the first move is that yesterday consolidated (an inside day or a small range). So the trades it sends are the Signature Trade in its mechanical form, not the full course setup with a drawn wedge. The textbook sketch above is a drawing and is labelled one. Every Signature Trade the free channel has sent is in the trade log, with its levels, losses listed like wins. ## What does our own test say? We tested the setup as a mechanical rule, with fixed conditions, and it did not make money. That is why we call the #SignatureTrade a description of where to look and who is on each side of the chart, and not a rule that works. A turn seen after a break is not a setup. The figures and limits are in [the backtest](/research/mechanical-setup-backtest-2015-2026/). Course 5 of ForexiaPRO, The #SignatureTrade, teaches this read step by step, from lesson 5.1.1. It is on [ForexiaPRO](/pro). ## Frequently asked questions ### How do you trade a rising wedge breakout? The textbook sells a break of the lower line with a stop above the high. We do not give a trade rule on this page. We describe what the break looks like and who is on each side of it: in our count of 184 rising wedges on 15-minute candles, 140 broke down, 39 broke up and 5 did not break, and in only 16 of the 140 had price already fallen under the wedge's last low when the line broke. ### How is the #SignatureTrade different from a rising wedge breakout? A rising wedge breakout is one shape. The #SignatureTrade is three conditions in order: a wedge on day one, a clear Asian range on day two, and a break of both the wedge and the previous day's high, usually at the London open. If the wedge or the range is not obvious, it is not a #SignatureTrade. ### Does the rising wedge breakout in the #SignatureTrade make money? We tested the setup as a mechanical rule, with fixed conditions, and it did not make money. The name describes a pattern in the chart and who is on each side of it. It is not a promise that the break turns. ## More from the blog ### [Confluence Trading Forex: Why One Reason Is a Guess, and What a Stack Is](/signature-trade/confluence-trading-forex/) Confluence trading forex means more than one reason on a chart. What counts as one reason, what counts twice, and one day that stacked six of eight. ### [Best Forex Trading Books: Seven Worth Reading, and What Each Gets Wrong](/learn-forex/best-forex-trading-books/) Best forex trading books: seven worth reading, from psychology to candles, and what each gets wrong. A reading order for beginners. No returns promised. ### [Average Daily Range on Tuesday: What ADR Met Tuesday Means](/weekly-cycle/average-daily-range-tuesday/) What it means when the average daily range is spent by Tuesday, how often it happens (28% of Tuesdays), and why it is one reading and not a signal.