A falling wedge pattern forms when the price of an asset has been declining over time, right before the trend's last downward movement. The falling wedge is a bullish chart pattern. Learn its meaning, trading strategy, examples, risk management, and related patterns. A falling wedge pattern is seen as a bullish signal as it reflects that a sliding price is starting to lose momentum and that buyers are starting to move in to slow down the fall. A falling wedge, also known as the descending wedge, is usually considered a bullish pattern. The pattern often appears in a downtrend as a signal of an upcoming trend reversal.
