A wedge is a crucial pattern in technical analysis that traders use to recognize potential reversals or continuations in market trends. By connecting the highs and lows over a series of periods, wedge patterns form as trend lines converge, creating a distinct arrow shape. These patterns, observed as either falling or rising wedges, often serve as indicators of significant shifts in price direction—offering valuable insights for making informed trading decisions. Understanding how to interpret these patterns can empower traders to anticipate market movements effectively.