What is rising wedge and falling wedge pattern?

A rising wedge is a chart pattern that is formed when the price of a security moves upward in a narrowing pattern, with higher highs and higher lows. This pattern is thought to be a bearish reversal pattern, as it indicates that the security's price may be losing momentum and may be unable to continue its upward trend. If the price breaks through the bottom of the wedge and falls, it may confirm a downtrend.

A falling wedge is a chart pattern that is formed when the price of a security moves downward in a narrowing pattern, with lower highs and lower lows. This pattern is thought to be a bullish reversal pattern, as it indicates that the security's price may be gaining momentum and may be able to continue its downward trend. If the price breaks through the top of the wedge and rises, it may confirm an uptrend.

It is important to note that rising and falling wedges are not guarantees that the price of a security will rise or fall. They are simply patterns that may suggest a potential trend reversal and should be used in conjunction with other technical and fundamental analysis tools to confirm a buy or sell signal. In addition, wedge patterns can be subject to interpretation and may be influenced by the biases and expectations of the analyst. As a result, different analysts may come to different conclusions about the same data.