Therefore, it's advisable to wait until the candle (or bar) closes below the support level before committing to a short position. The price may then resume its ascent, causing losses for traders who prematurely opened short positions. In such cases, what initially seemed like a trend reversal could turn out to be a temporary price fluctuation. These false breakouts can mislead traders into believing they've identified a rising wedge when, in reality, they haven't. Why is risk management crucial when using the ascending wedge pattern? The primary reason is the potential for false breakouts. Always use sound risk management techniques and stay informed about market developments. Remember, mastering the ascending wedge pattern and applying it effectively in trading requires practice.
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