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 – and 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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