I've seen many people confusing technical analysis patterns, so I’ll share what I’ve learned about the wedge shape, which is very useful for short- and medium-term trades.

First, let me clarify: the wedge shape is perfect for short-duration trades. The most important thing is that the upper and lower lines truly converge significantly. If the structure becomes too loose, then it’s not really a formed pattern; it could turn into another type of consolidation.

What really sets it apart is that in a wedge shape, both edges must go in the same direction and meet at a well-defined point. This is crucial. When you see an ascending wedge during a downtrend, it’s usually just a recovery wave, not the start of a real upward movement. But still, it’s worth keeping an eye on the short-term market trends at that moment.

Now, the biggest caution: sometimes a wedge shape looks similar to a triangle, but their logic is completely different. You need to distinguish them clearly. The difference lies in the characteristics: in a wedge pattern, price oscillations are very close to each other, and both trend lines have a clearly ascending or descending slope. If one of the lines is almost horizontal, then you’re looking at a right triangle, not a wedge shape.

It’s a detail that makes a difference when trading. It’s worth learning to identify these differences well before putting your money at risk.