A Falling Wedge is typically bullish — price makes lower highs and lower lows, but the trendlines converge downward as selling exhausts. A break above the upper line signals a rally.
How traders trade it
- Watch for a break above the upper trendline.
- A converging range shows selling exhaustion.
- It can reverse a downtrend or continue an uptrend.
See it in dtcharts
Scan for the falling wedge across markets in the dtcharts terminal — or draw it by hand with the charting tools.