Definition
Like a triangle, but both lines slope the same way, both up (a rising wedge) or both down (a falling wedge), as they narrow.
The story
In a rising wedge, price is still making higher highs and higher lows, but each climb is smaller than the last. Some traders read that as momentum fading and treat a rising wedge as a warning sign for an uptrend; a falling wedge is read the opposite way.
Why you'll see it
It's a commonly named pattern when a trend looks like it's losing steam.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms