Guide
Rising Wedge vs Falling Wedge: Which Is Bullish?
The direction can seem backward at first: a rising wedge usually leans bearish, and a falling wedge usually leans bullish.
Rising wedge
Both lines slope up and get closer together. Price is still rising, but each swing has less room, which can show the rise is losing strength. The read usually turns bearish when price breaks below the lower line.
Falling wedge
Both lines slope down and get closer together. Price is still falling, but the swings are shrinking, which can show the selling is losing strength. The read usually turns bullish when price breaks above the upper line.
Don't confuse them with
- Channels: the lines stay parallel instead of converging.
- Triangles: an ascending or descending triangle has one flat line. In a wedge both lines slope the same way.
What cancels each one
- Rising wedge: price breaks upward and holds above the wedge.
- Falling wedge: price breaks downward and holds below the wedge.
Related patterns
Educational only. Not financial advice or trading signals.