Trader Ansem: Beware of the risk of chasing after a rising wedge following a decline

According to a chart shared by trader Ansem, the ascending wedge that appears after a significant decline may be accompanied by decreasing volume, indicating that the upward momentum is weakening.

The chart points out that this trend may entice traders to re-leverage as prices form higher highs and higher lows; if prices drop rapidly, stop-loss orders near the lows along the way may trigger selling. The top of the wedge may also coincide with a higher resistance level from before the previous decline.