Glossary › wedge

Trading glossary · patterns

wedge

A chart shape where price moves between two slanted lines that squeeze together, both going up or both going down.

The fuller meaning

A pattern of two converging lines sloping the same way. A rising wedge, each push gaining less, is classically bearish; a falling wedge, each drop smaller, classically bullish. Unlike flags, the lines converge; like all patterns, wedges can break either way.

wedge.

Related words

apex · ascending triangle · bear flag · bull flag · busted pattern · chart pattern · continuation · continuation pattern · converging lines · cup and handle