Wedge
A wedge is a pattern where both boundary lines slope in the same direction while converging — a rising wedge or a falling wedge.
A wedge is a chart pattern where two trendlines slope the same way and squeeze closer together. A rising wedge slopes up and is usually read as bearish; a falling wedge slopes down and is usually read as bullish. The signal comes only when price breaks out, and wedges can fail.
- Category
- Price Action
- Reading time
- 3 min
- Also called
- Wedge pattern, Rising wedge, Falling wedge
- Updated
Wedges in plain words
A wedge is a chart pattern with two converging trendlines that slope the same way.1
A rising wedge is bearish: it starts wide at the bottom and narrows as price climbs.2
A falling wedge is bullish: it starts wide at the top and narrows as price drops.3
How to spot a wedge
Draw both lines
Check that both lines slope in the same direction.1
Count touches
Look for at least two touches on each line, which most analysts need to accept the pattern.1
Name the type
A rising wedge is widest at the start and tightens as price rises.2
Check volume
Volume often fades as the wedge forms, though not always.1
Wait for the break
For a falling wedge, wait for a break above resistance before acting on the bullish case.3
Confirm on volume
For a rising wedge, rising volume on the break below support confirms the bearish case.2
Worked examples
Example 1 — Rising wedge breaks down
−4A hypothetical stock in a rising wedge breaks its support line at 40 on volume 1.8× average and drops to 36.
| Volume | 1.8× |
| Move | 36 − 40 = −4 |
Price broke support on higher volume, confirming the bearish case — a holder would be at a loss.2
Example 2 — Falling wedge breaks up
+3A hypothetical stock in a falling wedge breaks resistance at 20 and rises to 23.
| Move | 23 − 20 = +3 |
The bullish case only counts after a break above resistance, which happened here.3
Example 3 — Wedge that keeps falling
No signalA hypothetical falling wedge never breaks resistance and slides from 15 to 13.
| Move | 13 − 15 = −2 |
Not every falling wedge turns up — it can keep falling, go sideways or break unexpectedly.1
Rising vs falling wedge
| Aspect | Rising wedge | Falling wedge |
|---|---|---|
| Slope | Up | Down |
| Usual bias | Bearish | Bullish |
| Trigger | Support break | Resistance break |
| Volume | Often falls | Often falls |
Where traders use it
Advantages and disadvantages
Advantages
- Clear lines to trade against.
- Works in up and down markets.
- Volume can confirm the break.
Disadvantages
- Lines are drawn by eye.
- Breakouts can fail.
- Can be confused with triangles.
- Can take months to form.
Going deeper
Read as far as you need. Each level builds on the one before it.
The shape
Beginner
Triangles have one flat side or lines sloping in opposite directions; in a wedge both lines slope the same way.1
Reversal or continuation
Intermediate
A falling wedge is usually treated as a reversal, but it can also act as a continuation pattern.3
Failure
Advanced
A falling wedge can still drop further, drift sideways or resolve in surprising ways.1
Common mistakes
Confusing it with a triangle
Both lines must slope the same way.
Trading before the break
Wait for the line to break.
Too few touches
Want at least two per line.
No stop
Exit if price re-enters the wedge.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- A wedge has two converging lines sloping the same way.
- Rising wedges are usually bearish.
- Falling wedges are usually bullish.
- The break of a line is the signal.
- Wedges can fail.
Frequently asked questions
Is a rising wedge bearish?
How is it different from a triangle?
Can a wedge fail?
Further learning
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- CMC Markets. Rising & falling wedge patterns explained (opens in a new tab) Checked .
- StockCharts ChartSchool. Rising Wedge (opens in a new tab) Checked .
- StockCharts ChartSchool. Falling Wedge (opens in a new tab) Checked .
Read more elsewhere
- Trading Metrics (our sister site): Rising Wedge (opens in a new tab)
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. Trading Metrics is our sister site, under the same ownership; we are not affiliated with any other publisher linked above. Last reviewed . Report an error or request a source credit.