Rising and falling wedges
Quick answerA wedge is two lines that both slope the same way and narrow. A falling wedge (both lines down) often breaks up as the selling runs out; a rising wedge (both lines up) often breaks down as the buying fades.
The details
Falling wedge
Both lines point down and get closer together: each push lower covers less ground. The selling is running out of steam, and a close up through the top line is the buy.
Rising wedge
Both lines point up and narrow: price still climbs, but each push higher is weaker. A close down through the bottom line is the breakdown.
Trading it
Same as a triangle: wait for the close outside the line, stop on the other side of the wedge, target the wedge's height at its widest (stops and targets).
TriTrader+ finds wedges too: it calls the falling wedge's break up, and draws the rising wedge for you to see (TriTrader+ Live).
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