When these trend lines come together, they create a wedge, which is how it gets its name. By keeping an eye out for two trend lines that have been steadily building over time and are converging, it is simple to identify a falling or descending wedge pattern. A continuation and reversal pattern is a falling wedge chart pattern.As a result, depending on the point in a trend where it manifests itself, the falling wedge can look as both a reversal and a continuation bullish pattern. This is because a narrowing of the range in this situation means that the asset’s price correction is growing smaller, which means that there will be a strong rally.

The falling wedge pattern is seen to be a bullish pattern if it comes with an upward shift in market momentum.

This is because a declining range indicates that bearish sentiment toward an asset is waning. A falling wedge is seen as a reversal pattern when it shows up amid a downward shift in market momentum.

When the price of a security repeatedly strikes lower highs and lower lows, constricting the range of the price movement, the falling wedge, also known as the declining wedge pattern, emerges.

The falling wedge is a reversal pattern that slopes downward in line with the general trend. The falling wedge will continue to slope downward as a continuation pattern, but the slope will be downward against the existing uptrend.

Although the falling wedge is discussed in this article as a reversal pattern, it may also be classified as a continuation pattern.

This bullish bias won’t materialize, though, until a breakdown of resistance takes place.

Falling wedges feature a clear downward slope and a bullish tendency in contrast to symmetrical triangles, which lack both. As the response highs and reaction lows converge, this price action shapes a cone that descends. A bullish pattern called the Falling Wedge widens at the peak and narrows as prices fall.In a bullish trend what seems to be a Rising Wedge may actually be a Flag or a Pennant (stepbrother of a wedge) requiring about 4 weeks to complete. A rising wedge is more reliable when found in a bearish market. As far as volumes are concerned, they keep on declining with each new price advance or wave up, indicating that the demand is weakening at the higher price level. Prices usually decline after breaking through the lower boundary line.

Although both lines point in the same direction, the lower line rises at a steeper angle then the upper one. In a rising wedge, both boundary lines slant up from left to right. When this pattern is found in a downtrend, it is considered a bearish pattern, as the market range becomes narrower into the correction, indicating that the correction is losing strength, and that the resumption of the downtrend is in the making. When this pattern is found in an uptrend, it is considered a reversal pattern, as the contraction of the range indicates that the uptrend is losing strength. The rising wedge pattern is characterized by a chart pattern which forms when the market makes higher highs and higher lows with a contracting range. Once prices move out of the specific boundary lines of a falling wedge, they are more likely to move sideways and saucer-out before they resume the basic trend.

There comes the breaking point, and trading activity after the breakout differs. Volume keeps on diminishing and trading activity slows down due to narrowing prices. The upper descends at a steeper angle than the lower line. In a falling wedge, both boundary lines slant down from left to right. When this pattern is found in an uptrend, it is considered a bullish pattern, as the market range becomes narrower into the correction, indicating that the downward trend is losing strength and the resumption of the uptrend is in the making. When this pattern is found in a downward trend, it is considered a reversal pattern, as the contraction of the range indicat es the downtrend is losing steam. The falling wedge pattern is characterized by a chart pattern which forms when the market makes lower lows and lower highs with a contracting range.

Descending wedge bullish