Reversal · Variable · Medium reliability
Wedge Pattern Explained
Decisive break outside the converging boundaries confirms bias.
What it looks like
A pattern with converging trend lines that can be either rising or falling.
Context matters — rising wedge in uptrends often warns of exhaustion.
Visual example
Illustrative geometry on ChartNox charts — not a live trade signal.
How to identify it
- Both trend lines slope the same way but converge.
- Rising wedge in uptrend often warns of exhaustion; falling wedge in downtrend may warn of reversal.
- Wait for a decisive break of the wedge boundary.
When the read is wrong
Invalid if price chops inside without a clean boundary break.
Common mistakes
- Drawing lines through only two touches. More touches on each side make the shape easier to trust.
- Assuming a direction before knowing whether the wedge is rising or falling.
Questions and answers
What is a wedge pattern?
Two trend lines slope the same way and get closer together. A rising wedge usually leans bearish and a falling wedge usually leans bullish.
Is a wedge a reversal or a continuation pattern?
It can be either, depending on the trend around it. That is why the break of the boundary matters more than the shape alone.
Ask ChartNox AI about Wedge
Open the tutor with this pattern pre-seeded. Educational coaching only — not a trade recommendation.
- How do I identify a Wedge on a chart, step by step?
- What usually invalidates a Wedge pattern?
- What mistakes do beginners make with Wedge?