Reversal Patterns · Bullish
Falling Wedge
Price makes lower highs and lower lows inside two descending lines that converge.
Both boundaries slope down, and the lower line is less steep, so the range tightens. A bullish reading waits for a close above the upper line.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- Highs and lows are both falling.
- The two trendlines converge.
- The break used for a bullish example is a close above the upper line.
Market context
A falling wedge can appear as a reversal after a decline or as a pause inside a larger rise. The break direction is what traders wait for.
Entry example
An example entry is the close above the upper boundary.
Stop-loss example
An example stop is back below the last swing inside the wedge.
Target example
An example target is the start of the wedge. There is no guaranteed measured move.
Common mistakes
- Calling a descending channel a wedge when the lines do not converge.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.