When formed in a downtrend, it signals a trend reversal, so the price is expected to move in a different direction and break the resistance line. When formed in an uptrend, it signals a continuation, which means the price is expected to continue moving upward. The rising wedge pattern can be formed in both an uptrend and a downtrend. It is generally considered a bullish signal, meaning the price is predicted to move upward. When formed in a downtrend, it signals a trend continuation, so the price is expected to continue moving downward.Ī falling wedge is marked by two lines slant down from left to right, with the upper line descending steeper than the lower one, forming a narrowing gap. When formed in an uptrend, it signals a reversal, which means the price is expected to move in a different direction and break the support line. It is generally considered a bearish signal, meaning the price is predicted to move downward. If you are not familiar with support and resistance, you can learn about them here.ĭepending on the direction of the price movement, there are two types of wedge patterns:Ī rising wedge is marked by two lines slanting up from left to right, with the lower line ascending steeper than the upper one, forming a narrowing gap. The two straight lines are the support and resistance that move in the direction of the market price. However, it has a key distinguisher, which is a noticeable slant either downward or upward.Ī wedge pattern is formed by two converging straight lines. The Wedge formation may appear similar to the symmetrical triangle pattern at a glance. In this chart pattern series, we will learn about the Wedge chart pattern. We’ve also learned that understanding chart patterns is essential for traders to decide the best action they need to take in response to the market situation. Charts are crucial in crypto trading as it contains lots of valuable information about the market.
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