Analyse Trading
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Wedge pattern

A wedge is formed by two converging lines sloping the same way. A rising wedge leans bearish; a falling wedge leans bullish.

Unlike a triangle, both edges of a wedge rise together (rising wedge) or fall together (falling wedge), while drawing closer. Price keeps progressing, but less and less.

A rising wedge reflects a rally running out of breath: each new high is barely above the previous one. A break to the downside can announce a reversal or a correction. The falling wedge is the mirror image.

You see it both at the end of trends and as a correction within a trend. Combine it with an oscillator divergence and wait for a confirmed break.

The full lessonContinuation patterns: triangles, flags and wedgesAscending, descending and symmetrical triangles, flags and wedges: how these pauses form, when to trade them and how to work out the target and the stop.← Full glossary