I've noticed that many overlook one of the most insidious patterns on charts — the rising expanding wedge. It's not just a pretty pattern; it's a signal that the market is starting to lose control after a strong rally.

The essence is simple: do you see two trend lines diverging upward? That’s the expanding wedge. Resistance runs through the rising highs, support through the rising lows, and both lines diverge in opposite directions. It looks like a wedge that’s getting wider.

What happens inside this pattern? The price continues to go up, but volatility increases. Each fluctuation becomes larger than the previous one — this is the main signal. Waves become more and more amplitude, which means market participants are losing confidence, even if the price is still rising.

To confirm, there should be at least three waves inside the expanding wedge. Without that, it’s just noise. But when you have a full formation, you won’t have to wait long — a breakout usually happens suddenly and quickly.

Here’s an important point: the expanding wedge is a bearish reversal pattern. Most traders prepare for a decline when support fails. It always starts after a strong bullish move, as if the market is losing momentum and preparing for a reversal.

Right now, I’m watching TRUMP, WLFI, and MYX — interesting assets to monitor. If you notice an expanding wedge on the hourly or four-hour chart, it could be a good entry point for a short or an exit from a long. The main thing — don’t rush, wait for confirmation of the pattern, and only then act. Volatility inside the wedge can be deceptive, so discipline is key here.