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.