What is a falling wedge pattern?

As a continuation pattern, the falling wedge will still slope down, but the slope will be against the prevailing uptrend. As a reversal pattern, the falling wedge slopes down and with the prevailing trend. Regardless of the type (reversal or continuation), falling wedges are regarded as bullish patterns.

Why do technical analysts follow a falling wedge pattern?

The falling wedge pattern is followed by technical analysts because it typically signals a bullish reversal after a downtrend or a trend continuation during an established uptrend.

What does a falling wedge mean on a candlestick chart?

On a candlestick chart, a falling wedge is a powerful move lower because there are lower highs and lower lows. You might be wondering, is a falling wedge bearish?

What is a wedge on a price chart?

What Is a Wedge? A wedge is a price pattern marked by converging trend lines on a price chart. The two trend lines are drawn to connect the respective highs and lows of a price series over the course of 10 to 50 periods.