Wedge
a.k.a. Wedge pattern
A chart pattern with two converging trend lines that both slope the same way, often hinting at a reversal.
In plain English
A chart pattern with two converging trend lines that both slope the same way, often hinting at a reversal.
A wedge forms when price moves between two trend lines that point in the same direction but squeeze together. In a rising wedge, both lines slope up; in a falling wedge, both slope down.
The narrowing shows momentum fading. Rising wedges are usually treated as bearish and falling wedges as bullish, because the break tends to go against the slope. Unlike a symmetrical triangle, where the lines point in opposite directions, a wedge leans.
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