The wedge chart pattern is a technical analysis formation commonly found in financial markets. It is characterized by two converging trend lines, which resemble a wedge or a triangle shape on a price chart. The wedge can either be sloping upwards, known as a rising wedge, or sloping downwards, called a falling wedge.

A rising wedge occurs when the support line, representing the lower price boundary, slants upwards at a steeper angle than the resistance line, which represents the upper price boundary. This pattern is typically considered bearish, as it suggests that the market is losing momentum, and a potential downward trend reversal may occur.

Conversely, a falling wedge forms when the resistance line has a steeper slope compared to the support line. This pattern is often seen as bullish, signaling potential upward price movement, as it indicates a weakening downtrend and a possible trend reversal to the upside.

Traders and analysts look for wedge patterns as they can provide insights into potential price movements. Breakouts from the wedge pattern are closely monitored, as they may signal the beginning of a new trend. However, it's essential to consider other technical indicators and market conditions before making trading decisions based solely on wedge formations. Like all chart patterns, the wedge should be used in conjunction with other tools to increase the probability of making accurate predictions in the financial markets.