← All articles
Chart Patterns
Wedge Patterns, Explained
A wedge slopes with the trend but often breaks against it — one of the more counterintuitive patterns.
NoVo Options Trading · 2026
A wedge is formed by two converging trendlines that both tilt in the same direction. A rising wedge slopes up; a falling wedge slopes down. Unlike a symmetrical triangle, a wedge has a directional tilt — and that's where it gets counterintuitive.
Why they often reverse against the tilt
A rising wedge — higher highs and higher lows, but converging — often resolves downward. The rising structure looks bullish, but the narrowing shows buyers making less progress on each push; momentum is fading even as price grinds up. A falling wedge is the inverse: it slopes down but often breaks up, as sellers lose steam into the apex.
Continuation vs reversal
Context sets the meaning. A falling wedge inside an uptrend is usually a bullish continuation (a pullback resolving up); a rising wedge after a long rally is often a topping reversal. The tilt tells you the near-term drift; the trend it sits in tells you the likely resolution.
A rising wedge looks strong and often ends weak. The narrowing is the tell, not the tilt.
Trading the break
As with all coiling patterns, the wedge compresses volatility toward a decision point — expect an expansion. Wait for a decisive break of the wedge line on volume rather than guessing inside it; wedges produce false breaks, especially the symmetrical-looking ones. The breakout, confirmed, is the trade — not the shape alone.
Ready to put it to work?
NoVo reads the full tape and maps every dealer level live — the market intelligence no human can track by hand — then executes any trade in one click. Trade beside it, or just take the daily read.
NoVo Trader · $169/mo
Trade it in one click.
The cockpit maps every dealer level on your chart and executes your Buy Calls / Buy Puts in one click — it picks the strike, sizes it, and manages the stop and the exit ladder. You decide every entry. Non-custodial, in your own broker.
Start NoVo Trader →
NoVo Analyst · $79/mo
Just want the read?
The live dealer map — dealer positioning, options flow, and in-house sweeps & block prints — plus a written market read every session, to your inbox, the dashboard, and the private Analyst Discord. Structure, levels, and the order-flow footprint.
Get NoVo Analyst — free trial →
NoVo is a software tool for market analysis and for executing trades you initiate, not financial advice. This article is general education, not investment advice. Options trading involves substantial risk of loss, up to and including your entire capital. NoVo makes no guarantee of profit, win rate, or performance, and past results do not predict future outcomes. You are responsible for your own broker account, configuration, and trading decisions.