Rising Wedge & Falling Wedge Patterns Explained

A wedge forms when the price moves between two trend lines that slope the same way and converge. A rising wedge is usually read as bearish; a falling wedge as bullish.

Rising wedge

The price makes higher highs and higher lows, so both lines slope up.
The lower line is steeper than the upper one, so they converge: each push higher gains less ground.
The pattern is confirmed when the price closes below the lower line.

It’s considered bearish because the rise is losing momentum even though prices are still going up. It can appear as a reversal at the end of an uptrend, or as a pause within a downtrend.

Falling wedge

Both lines slope down and converge, with the upper line steeper. Selling is losing momentum, and the pattern is confirmed on a close above the upper line.

Wedges vs triangles

In a wedge both lines slope the same way. In a symmetrical triangle they slope towards each other (one up, one down); in an ascending triangle the top is flat; in a descending triangle the bottom is flat.

Drawing it on TradingView

Use the Trend Line tool (shortcut Alt + T) for necklines and wedge lines, the Parallel Channel tool for flags, and the Patterns group in the left toolbar, which includes a head and shoulders drawing tool. Practise on past charts with Bar Replay, and see all TradingView shortcuts.

No pattern is a guarantee. Patterns describe how buyers and sellers behaved; they don’t predict the next move on their own, and they fail often. Traders usually wait for confirmation, look at where the pattern forms (after a trend, at support or resistance), and decide their exit before they enter. Size the trade with the position size calculator.

Diagrams are illustrations drawn from example prices. Hollow candles closed higher than they opened; filled candles closed lower. ChartWatch doesn’t give trading advice.

FAQ

Is a rising wedge bullish or bearish?

A rising wedge is usually considered bearish, and is confirmed by a close below its lower trend line.

Is a falling wedge bullish?

Yes. A falling wedge is usually considered bullish, confirmed by a close above its upper trend line.

What is the difference between a wedge and a triangle?

In a wedge both trend lines slope in the same direction. In a symmetrical triangle they slope towards each other, and ascending or descending triangles have one flat line.

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