#BULLISH FALLING WEDGE PATTERN SERIES#

The bulls are still in control and pushing the price higher. In this scenario, the falling wedge pattern suggests that the uptrend is likely to continue. The Falling Wedge as a Continuation PatternĪ falling wedge as a bullish continuation pattern within an uptrend can be observed when the price of a security is trending upward and forming a falling wedge pattern. Also, it’s important to consider the context of the market and other indicators before making a decision based on a falling wedge pattern. It’s important to note that a falling wedge pattern at the end of a downtrend is a bullish bottoming pattern, which means it signals a potential change in the direction of the trend and the start of an uptrend. This move indicates that the bears have lost control, and the bulls have taken over, pushing the price upward and reversing the downtrend. The pattern is typically confirmed when the price breaks above the resistance trendline of the wedge. In this scenario, the falling wedge pattern suggests that the downtrend is likely to end, and the bulls are starting to take control of the market.

The price breaks out of the wedge, indicating a reversal of the downtrend and the potential for an upward price movement.Ī falling wedge as a bullish bottoming pattern that ends a downtrend can be observed when the price of a security is trending downward and forming a falling wedge pattern.

The downward slope becomes increasingly narrow over time, forming a wedge shape.

The price begins to trend downward, forming a downward slope.

To identify a falling wedge pattern, you will want to look for the following characteristics:

The falling wedge pattern is considered bullish as it suggests that buying pressure is increasing and the price may break out of the wedge to the upside. As the trendlines converge, the distance between them decreases, narrowing the wedge over time.

#BULLISH FALLING WEDGE PATTERN SERIES#

The pattern is characterized by two converging trendlines, with the upper trendline connecting a series of lower highs and the lower trendline connecting a series of lower lows. A falling wedge chart pattern in technical analysis can indicate a bullish reversal that can occur as a bottoming pattern or a continuation pattern.

Bullish falling wedge pattern