Falling and Rising wedges

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The rising wedge is a bearish chart pattern that is formed by a series of lower highs and higher lows. It indicates that the stock is making lower highs, but the pullback is not strong enough to break the trend line.

This pattern can be seen on all time frames, including daily charts or even tick charts (which track individual trades).

Falling wedge

A falling wedge is a chart pattern that looks like an inverted V, with the lower part of the "V" pointing down and getting narrower as it approaches a trend line. A falling wedge can be identified when you see price action forming a series of lower highs and higher lows.

The falling wedge pattern is considered to be bullish, so if you're looking to buy stocks or enter long positions in your portfolio, this would be one way to do it. The best time to enter a trade based on this pattern is when prices break above resistance (or down through support) after forming at least two higher highs and two lower lows within an established channel (see image below).

When trading this pattern alone without any other indicators or technical analysis techniques being used alongside it, traders should use stop losses around break-even point--or even better yet: just below support level--and sell limit orders above resistance level as soon as they start seeing price action break out from its consolidation range.
Wedges are continuation patterns.

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