Trader Ansem: Beware of chasing the rally in post-decline ascending wedges

on November 10, according to charts shared by trader Ansem, the ascending wedge that formed after a sharp sell-off may be accompanied by declining volume, signaling weakening upward momentum.

The chart indicates that this pattern may lure traders to re-leverage as the price forms higher highs and higher lows; if the price drops rapidly, stop-loss orders near the lows along the way could trigger selling. The top of the wedge may also align with a higher-level resistance zone prior to the previous drop.