A wedge is a technical formation used in technical analysis (TA) that often indicates a price reversal in an asset. Rising wedges and falling wedges are the two main types of wedges. When the price of an asset falls in a downward narrowing channel, it is followed by a bullish price reversal. Rising wedges, on the other hand, occur when the price of an asset rises in an upward widening channel, followed by a bearish price reversal.