Wedge
Both boundaries sloping the same way, converging
What it is
A compression where the highs and the lows both slope in the same direction and close on each other. A rising wedge climbs into its own ceiling; a falling wedge sinks into its own floor. It is the slope of both rails together that separates a wedge from a triangle.
What it may suggest
Momentum draining while price still moves. In a rising wedge each push up is smaller than the last, which may suggest buyers are working harder for less.
Where it fails
Wedges are the pattern most often drawn after the fact — any converging stretch of chart can be made into one by choosing which highs and lows to touch. Two touches a side is a line you drew; three is a boundary the market respected.
Also called rising wedge, falling wedge, wedge pattern.
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