What Is Wedge Pattern?
A wedge forms when both trendlines (resistance and support) slope in the same direction but converge. Rising wedge = both sloping up but converging; falling wedge = both sloping down but converging. Unlike triangles, both boundaries point the same way.
Rising wedges typically resolve downward — even in uptrends. The narrowing range and slowing higher highs suggest exhaustion of buying. Falling wedges typically resolve upward — bullish, even in downtrends. The pattern shows shrinking selling pressure as the floor falls.
Wedges take longer to form than flags or pennants — often weeks. The breakout direction is more reliable than triangles because the slope itself biases the expectation. Volume confirmation: breakout volume should be at least 1.5x the average of the wedge.
Related terms
- Flag Pattern — Short consolidation after a strong move, typically resolving in the same direction.
- Ascending Triangle — Bullish continuation pattern with a flat ceiling and rising support.
- Breakout — A price move beyond an established support, resistance, or chart pattern boundary.
- Divergence (Bullish / Bearish) — When price makes a new high or low but a momentum indicator does not — signal of weakening trend.