The falling and rising wedge patterns occur frequently and play out as expected more often than not. However, you should avoid trading any and every wedge pattern that you see on the chart. It is best to make sure there is context for the pattern to play out as expected.
The wedge patterns have a higher probability when combined with Supply and Demand.
Having a falling wedge terminate at a demand zone or a rising wedge terminate at a supply zone is a strong confluence.
Falling wedge terminating at a demand zone
Rising wedge terminating at a supply zone
Don’t expect the wedge pattern, or any pattern for that matter, to be picture perfect like shown on a chart pattern cheat sheet. On the charts, the pattern can look messy and you will have some wicks that violate the trendlines or it may not have equal touches on both trendlines.
Tip: Use the line chart to make these pattern easier to see
You can also apply this concept to bullish and bearish flag patterns.
