A technical analysis term used to describe a chart on which lines that connect tops and bottoms converge towards each other but are both moving in the same direction. Similar to a triangle, except that in a triangle, the trends move in opposite directions, with the tops decreasing and the bottoms increasing. In a wedge, both lines have the same trend (upward or downward) but have different slopes, leading to the convergence. A falling wedge is generally thought to be a rest during a period of upward movements.

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descending bottoms ascending tops