The Ascending Wedge Pattern is a bearish reversal pattern that typically occurs during uptrends, signaling a potential trend reversal or decline in price. It is formed by two upward-sloping trendlines: one connecting a series of higher highs and another connecting higher lows. However, the upper trendline has a gentler slope compared to the lower one, indicating a loss of momentum as the price continues to rise.

The narrowing of the wedge suggests that buying pressure is weakening, while selling pressure is gradually increasing. This imbalance often leads to a breakdown below the lower trendline, signaling the start of a new downtrend.

Traders typically watch for a breakout to confirm the pattern. Once the price breaks below the lower support line, it is often seen as a signal to enter short positions or sell existing ones. The pattern's reliability improves with high trading volume during the breakout.

In summary, the Ascending Wedge Pattern warns traders of an impending decline in price after a steady uptrend, serving as a cue to prepare for potential reversals in the market.