Wedge

A chart pattern formed by two converging trendlines, where price makes higher lows and lower highs (symmetrical wedge) or both trendlines slope in the same direction (rising or falling wedge). A rising wedge in an uptrend is typically bearish, signaling that buying momentum is weakening, while a falling wedge in a downtrend is typically bullish. Traders watch for a decisive breakout from the wedge on strong volume to confirm the pattern's directional signal.