Falling Wedge Pattern


What is a Falling Wedge Pattern?

At the most basic level, Falling Wedge formations are bullish continuation patterns and look similar to triangle patterns (ascending triangle, descending triangle, and symmetrical) because of the converging trendlines( support and resistance) and narrowing price ranges(forms a cone).

Falling wedges slope down and have a bullish bias, they are usually found in up-trending markets.

However, they can become a reversal pattern if the currency pair price move below the lower (support) trendline.

What does a Falling Wedge Formation look like?
Falling Wedge Pattern

How to trade this pattern?

(1) Go long when the currency pair price rises above the upper trendline and place your stop below the lower trendline (support line) – continuation pattern.

(2) Go short when the currency pair price falls below the lower trendline and place your stop above the upper trendline – reversal pattern.

See more: Rising Wedge Pattern

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