Patterns: Wedge

What Does Wedge Mean?

A technical chart pattern composed of two converging lines connecting a series of peaks and troughs.

wedge

Falling wedges indicate temporary interruptions of upward price rallies. Rising wedges indicate interruptions of a falling price trend. Technical analysts see a ‘breakout’ of this wedge pattern as either bullish (on a breakout above the upper line) or bearish (on a breakout below the lower line).

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