A price pattern created by converging trend lines on a price chart. The two lines are drawn to connect the highs and lows of a price over the course of 10-50 trading periods. These lines display the highs and lows as either rising or falling and create a wedge shape as the two lines converge. These trend lines are seen as useful indicators of a potential reversal. A wedge pattern has a fairly solid track record at predicting the point of price reversals.
Wedges
Market Terms
We don't know everything about the markets. We're just devoted to learning. Taken from those smarter than ourselves, here's how we define Wedges.