Falling Wedge

The falling wedge pattern is a continuation pattern formed when the price bounces between two downward sloping, converging trend lines.

It is quite often considered as a bullish chart formation but can indicate both reversal and continuation patterns.

A Falling Wedge can be greater, after a moderate downside move due to the possible decrease of overhead resistance as the pattern is formed.

Falling Wedge patterns are good indicators to assume that we are at the beginning of a buying opportunity, especially when in context with other tradable buy setups.