Falling Wedge
a.k.a. Descending wedge
A pattern where price drifts lower between two converging downward lines, often ending with a break upward.
In plain English
A pattern where price drifts lower between two converging downward lines, often ending with a break upward.
In a falling wedge, both the highs and lows slope down, but the lows fall more slowly, so the lines squeeze together. Selling is losing energy with each push.
It is usually read as bullish, whether it shows up after a decline (a reversal) or as a pause in an uptrend (a continuation). The signal comes when price breaks above the upper line.
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