Learning Hub
Falling Wedge
bullish
Definition
Both trendlines slope down but converge — selling weakens into a bottom.
Psychology
Price keeps falling but with less and less energy — often a sign it will rise.
Real-life analogy
💡 Sliding downhill but slowing down — about to turn back uphill.
Expected direction
up
Entry / Stop / Target
Entry: On a breakout above the upper trendline. · Stop: Below the recent low. · Target: Wedge height projected up.
Historical behaviour
Bullish in most contexts despite falling price.
Illustrative success rate
~60-68% breakout · Medium reliability
Common beginner mistakes
- • Treating falling price as bearish here
Quick quiz — did you understand?
1. Is the Falling Wedge generally considered bullish, bearish, or neutral?
2. After a confirmed Falling Wedge, the expected direction is usually:
3. Which is a common beginner mistake with the Falling Wedge?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.