Falling Wedge Chart Pattern — How to Spot and Trade It
7/6/2026
Both trendlines slope down but converge — selling weakens into a bottom.
In plain words
Sliding downhill but slowing down — about to turn back uphill.
What the classic books say
The Falling Wedge is a reversal pattern with reference reliability Medium and illustrative behaviour of ~60-68% breakout (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). Bullish in most contexts despite falling price.
Level by level
Beginner
Price keeps falling but with less and less energy — often a sign it will rise.
Intermediate
Narrowing lower highs/lows show fading selling despite the down-slope; typically bullish.
Advanced
A bullish pattern even in downtrends; the breakout of the upper line confirms.
Trade plan (educational template)
- Entry: On a breakout above the upper trendline.
- Stop-loss: Below the recent low.
- Target: Wedge height projected up.
- Check the numbers with the Risk-Reward calculator before any entry.
Common beginner mistakes
- Treating falling price as bearish here
Practise it now
_Educational content only — not financial advice. Historical behaviour never guarantees future results._
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