Courses / Chart Patterns Masterclass

Rising and Falling Wedges

Converging lines that slope in the same direction often precede reversals.

A rising wedge has both lines sloping up and converging. Price makes higher highs but with shrinking momentum. It often breaks down. A falling wedge slopes down and often breaks up.

Wedges can be reversal patterns at the end of trends or continuation patterns inside larger trends. Confirm with the breakout and momentum divergence.

Targets often use the start of the wedge. A stop beyond the last swing limits risk.

Key takeaways

• Both lines slope the same way and converge
• Rising wedge tends to break down, falling wedge up
• Momentum divergence adds weight

Quiz

• A rising wedge usually breaks: Answer: Down. It often breaks down.
• A falling wedge often leads to: Answer: A rally. It often breaks upward.
• What helps confirm a wedge? Answer: Momentum divergence and a breakout. Divergence and breakout together.

Educational content, not financial advice.