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Trading glossary · patterns

falling wedge

A chart shape where price keeps falling, but each drop is smaller, squeezing into a point before it often breaks upward.

The fuller meaning

A pattern of two falling, converging lines in which each new low is shallower, suggesting sellers are tiring. Classic books call it bullish, completed by a close above the upper line, but it can break down too, so the lessons measure it rather than assume.

falling wedge.

Related words

apex · ascending triangle · bear flag · bull flag · busted pattern · chart pattern · continuation · continuation pattern · converging lines · cup and handle