⁣A Wedge Pattern is a consolidation pattern that can either signal a continuation or reversal, depending on the type of wedge and market context. There are two types of wedges: Rising Wedge: The price moves within two upward-sloping trendlines that converge. This is usually a bearish reversal pattern if the price was previously in an uptrend. Falling Wedge: The price moves within two downward-sloping trendlines that converge. This is usually a bullish reversal pattern if the price was previously in a downtrend. Key Point: Wedges often indicate that a breakout is coming, and the direction of the breakout depends on the trend prior to the wedge formation. Example: In a rising wedge after an uptrend, a breakout to the downside indicates a reversal, and in a falling wedge after a downtrend, a breakout to the upside suggests a bullish reversal.