Falling Wedge
A bullish pattern where price contracts between two down-sloping lines, with the move usually resolving to the upside.
A falling wedge has two converging trendlines that both slope down, but the upper (resistance) line falls faster than the lower (support) line. The narrowing, fading decline signals selling pressure is drying up even as price drifts lower.
A break above the upper trendline on rising volume is the trigger. A falling wedge can be a reversal (after a downtrend) or a continuation (a pullback within an uptrend); both lean bullish.
On StockSetups
Bullish wedge resolutions show up on StockSetups' board as breakouts, with the wedge lines and trigger level drawn on the chart.
Related terms
See falling wedge on tonight's board.
StockSetups scans the whole US market after the close and draws the patterns, levels and indicators on every chart.
Start free — 7-day full access →