Falling Wedge
Also known as: Descending Wedge
Two downward-sloping, converging lines. Despite the falling look, a falling wedge is usually bullish: selling pressure exhausts itself.
How it forms
Highs and lows fall, but the lows flatten faster than the highs: the channel narrows downward. Volume declines until price breaks out upward.
How it is typically traded
On a break above the upper (falling) boundary.
The height of the wedge at its widest point, projected upward from the breakout.
Below the last low inside the wedge.
Where & when, plus the limits
Can appear as continuation (in uptrends) or reversal (at the end of downtrends), both bullish. Its counterpart is the rising wedge (bearish).
Related patterns
Education, not investment advice. Chart patterns describe probabilities, not guarantees. They fail regularly. Always manage risk with stop-loss and position size.
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