Lessons › Chart patterns › Falling wedge
World 3 · Chart patterns · lesson 12 · level 3
Falling wedge
Price falls, but each drop is smaller than the last, and the squeeze often breaks up.
What it is
Price falls inside two falling lines that squeeze together, then breaks up.
Your task in the app
Spot the wedge. Then decide: buy, sell, or wait?
How often it worked
| Market | Times found | Target first | Stop first | Went nowhere |
|---|---|---|---|---|
| India (NSE) | 26 | 46% | 54% | 0% |
| United States | 17 | 53% | 41% | 6% |
| Japan | 12 | 33% | 58% | 8% |
| Crypto | 296 | 34% | 55% | 10% |
| Forex | 32 | 31% | 50% | 19% |
| Commodities | 6 | 17% | 83% | 0% |
Counted on real past charts by the Trading Class research engine, 389 cases in all. Past odds, not a forecast.
Read more on the Falling wedge pattern page.
Goal of this lesson: Recognize a falling wedge and why it often breaks upward.