Concept
Rising/falling Wedge
Rising/falling Wedge is a Chart & Candlestick Patterns concept. The Library holds 4 implementations, each one a working definition you can pull into Quant.
Top Rising/falling Wedge indicators
4 total
What is a Rising/falling Wedge?
A wedge is a consolidation bounded by two converging trendlines that slope in the same direction. In a rising wedge both lines point up with the lower line steeper, so each new high gains less ground than the lows beneath it; in a falling wedge both point down with the upper line steeper. The slope is the tell: the side pressing the pattern keeps paying more for less progress, which is why the conventional resolution is against the slope (rising wedges break down, falling wedges break up).
Wedges play both roles. Formed against the prevailing trend they act as continuation patterns (a falling wedge in an uptrend is essentially a sloped bull flag with converging edges), while a rising wedge grinding higher at the end of a mature advance is a classic reversal shape. Volume typically contracts as the lines converge. The against-the-slope break is a tendency, not a rule; wedges also break with the slope, so the break itself carries the information.
How traders use it
- As a continuation entry: a falling wedge forming as a pullback in an uptrend (or a rising wedge in a downtrend) is traded on the break of the counter-slope line, with a stop beyond the wedge's far edge.
- As an exhaustion warning: a rising wedge advancing on shrinking range and volume late in a trend is a common cue to tighten stops rather than add exposure.
- As a shape filter against triangles: converging lines that slope the same way make a wedge; a flat side or opposing slopes make a triangle, and the two carry different conventional biases.
More Rising/falling Wedge implementations
Related concepts · Continuation chart patterns
Concept family
Chart & Candlestick Patterns
84 concepts mapped · 46 in the Library
Rising/falling Wedge FAQ
Is a rising wedge always bearish?
No. The downside break is the conventional expectation because a rising wedge shows effort producing shrinking progress, but plenty of rising wedges resolve upward, especially in strong trends. Most traders treat the bias as conditional: lean bearish only once the lower line actually breaks, and respect an upside break as evidence the compression resolved the other way.
What is the difference between a wedge and a flag?
Both are pauses after a directional move, but a flag's boundaries are roughly parallel while a wedge's converge, and a wedge's lines share the same slope direction. A falling wedge and a bull flag in an uptrend trade similarly, as countertrend drifts bought on the upside break; the wedge simply adds compression as the range narrows toward the apex.
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