wedge investment & finance definition

A technical formation on a price chart that resembles a triangle in its shape and the amount of time it takes to form. A wedge is created when two converging trend lines come together at an apex. The wedge usually lasts more than a month but not more than three months. Typically, the wedge is slanted either upwards or downwards. The wedge slants against the current trend. A falling wedge (which looks like a flag pointing down) is considered bullish; a rising wedge is considered bearish.