Wedge Pattern

A wedge is a converging pattern that technical analysis categorizes as a subset of reversal patterns. It doesn't take much trading experience to face one of them. While the price can be out of either trendline, It is more likely to go out in another direction. Two slopping trendlines are convergent and the price shows a reversal manner at the end; that's all things need to be known for finding wedge patterns. The trend of market should be considered to identify types of wedges. From the point of technical analysis, the wedge pattern is divided into two groups:

Bearish Wedge (Falling Wedge): This type of wedge usually forms when trendlines go through near each other with a negative slope.
Bullish Wedge (Rising Wedge): It can be seen whenever trendlines have up growing direction and price swings have a generally positive direction.

1. Appearance: Two slopping trendlines that move towards a point and mostly don't meet! They form an incomplete triangle without an apex, but trendlines' extension can demonstrate it well. Depending on the trend of market, a falling wedge is shaped by a declining trend and vice versa; in an uptrend, a rising wedge.

2. Trendline: Drawing both the upper and lower trendlines is enough for finding any type of wedge on the price chart.

3. Pattern Category: Wedge patterns have a reversal manner; Price may turn around at any moment and traders should have an eye on the market.
4. Breakout Direction:

Expectation: In a reversal pattern, the breakout can happen to the upside after a bearish trend or the downside after a bullish trend. All this is just another way to say that price may leave the pattern in a completely opposite direction of its entrance. Bullish turns into a bearish trend and vice versa. The target is the height of the complete wedge at the breakout point and is projected from the breakout in the breakout direction to determine the minimum possible target for price.
Failure: When the price continues the prevailing trend and exits the wedge in the same direction as it enters, the pattern failed. (Bullish-to-bullish, or Bearish-to-bearish).