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What Is a Wedge Pattern

A wedge is a stretch where the line through the highs and the line through the lows both lean the same way and close in on each other, so the swings get smaller. This paper shows you a real rising wedge drawn from the euro in February 2025, how a wedge differs from a triangle, the wedge on the daily chart, a falling wedge on the pound, and the chart shift that leaves room on the right of your platform for the lines to meet.

Difficulty
Intermediate
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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Both lines lean the same way

A wedge is a stretch of chart where the line through the highs and the line through the lows both lean the same way and close in. In February 2025 the euro against the dollar made highs of 1.04426, 1.05139 and 1.05285, each a little higher, and lows of 1.021, 1.0279 and 1.04004, each a lot higher — a pip being the fourth decimal place, the smallest step most people count in. Both lines rise; the lower one rises faster; the swings between them shrank from 236 pips to about 60. That is a rising wedge.

A wedge against a triangle

Wedges and triangles are cousins, and the lean of the lines tells them apart. In a triangle one line falls while the other rises, and they meet on the level. In a wedge both lines lean the same way and meet uphill or downhill. When both rise it is a rising wedge; when both fall it is a falling wedge. In either, the swings get smaller as the two lines close in, which is what the two shapes have in common.

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