Wedge Pattern – Simple Explanation

📚 Wedge Pattern – Simple Explanation

A wedge pattern is a shape on the chart that looks like a triangle or cone. It tells us that the price is getting ready to break out — either up or down.


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🔻 Falling Wedge (Bullish)

Looks like price is going down, but slowly.

Lines move closer together.

Usually means the price will go up soon.

It's a bullish signal (good for buying).



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🔺 Rising Wedge (Bearish)

Price goes up, but losing strength.

Lines get closer together.

Usually means the price will go down soon.

It's a bearish signal (good for selling).



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💡 Easy Tips:

Wait for breakout (big move out of the wedge).

Use a stop-loss below/above the pattern.

Target = height of the wedge.



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📌 In Short:

Wedge = Squeeze pattern.

Falling wedge = Buy chance.

Rising wedge = Sell chance.



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