Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Wedges.

A price pattern created by converging trend lines on a price chart.  The two lines are drawn to connect the highs and lows of a price over the course of 10-50 trading periods.  These lines display the highs and lows as either rising or falling and create a wedge shape as the two lines converge.  These trend lines are seen as useful indicators of a potential reversal.  A wedge pattern has a fairly solid track record at predicting the point of price reversals.