Definition of Wedge
A chart pattern formed by two converging trendlines. A rising wedge (bearish) has both lines sloping upward; a falling wedge (bullish) has both lines sloping downward. Wedges typically signal a reversal.
At a glance
Term
Wedge
URL slug
wedge
Category
General
Short answer
A chart pattern formed by two converging trendlines.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Wedge” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Wedge” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Wedge” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
A chart pattern formed by two converging trendlines.
Knowing the precise definition of “Wedge” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Wedge” as loose slang while your broker/platform specification defines it more narrowly.