What is Wedge (Technical Formation)?

A wedge is a technical formation used in technical analysis (TA) that often signifies a reversal in the price of an asset. The two main types of wedges are rising wedges and falling wedges. Falling wedges result when an asset's price decreases in a downward narrowing channel, followed by a bullish reversal in price. Conversely, rising wedges result when an asset's price increases in an upward widening channel, followed by a bearish reversal in price.