Wedge Patterns Explained
A wedge is a pattern where both trendlines slope in the same direction but converge. A rising wedge is typically bearish; a falling wedge is typically bullish.
Rising and falling wedges
A rising wedge has both the highs and the lows sloping up, but the lows rise faster so the lines converge. Despite the upward slope it is usually bearish — momentum is fading even as price grinds higher. It appears both as a reversal at tops and as a continuation in downtrends.
A falling wedge is the inverse: both lines slope down and converge, and it is usually bullish. The narrowing range shows selling losing steam before an upside break.
How to trade a wedge
Wait for the close beyond the wedge in the expected direction — down for a rising wedge, up for a falling wedge. The narrowing structure means stops cluster tightly, so false breaks are common.
Distinguish a wedge from a triangle: a triangle has one flat or opposing line, a wedge has both lines tilted the same way. Confirm the break against key levels.
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Play Chart Bound free → Try today's Call the Candle →Frequently asked questions
Is a rising wedge bullish or bearish?
Usually bearish. Even though price is making higher highs, the converging trendlines show momentum weakening, and wedges tend to break in the opposite direction of their slope.
What is the difference between a wedge and a triangle?
In a wedge both trendlines slope the same direction (both up or both down). In a triangle one line is flat or the two lines slope toward each other from opposite directions.
Which way does a falling wedge break?
Usually upward. A falling wedge shows sellers losing momentum as the range narrows, so it tends to resolve with a bullish breakout — confirmed on a close above the upper line.