Wedge Pattern
Technical AnalysisA pattern of converging trendlines sloping the same way: rising wedges usually read bearish, falling wedges bullish, on a boundary break.
A wedge is a chart pattern in which price compresses between two converging trendlines that both slope in the same direction. In a rising wedge, highs and lows climb but the upper line rises more slowly, showing buying momentum fading; it is usually read as bearish. In a falling wedge, both lines slope down and selling pressure wanes, which is usually read as bullish.
Wedges differ from triangles because both boundary lines lean the same way rather than converging around a flat side. Traders commonly wait for a close beyond the wedge boundary before acting, place stops beyond the opposite line, and note that wedges can appear as reversals at trend extremes or as pauses within a trend.