Wedges: rising and falling

The wedge resembles the triangle in the convergence of its two lines, but differs from it in that the two lines slope in the same direction (both rising or both falling). It is usually a reversal pattern, and may be a continuation one depending on its position.

The two types

• The rising wedge — its two lines slope upward and converge, with price rising but on fading momentum. A negative pattern pointing to a coming decline.
• The falling wedge — its two lines slope downward and converge, with price falling on fading momentum. A positive pattern pointing to a coming rise.