Falling Wedge

Bullish62% Win Rate~16 bars to target

A falling wedge forms when price makes lower highs and lower lows within converging trendlines — but the highs are falling faster than the lows. This compression signals diminishing selling pressure and often precedes a bullish breakout.

How to Identify the Falling Wedge

  1. 1Both upper and lower trendlines slope downward, but upper line has a steeper slope
  2. 2Converging trendlines — the pattern narrows over time
  3. 3Volume typically declines as the wedge forms
  4. 4Breakout above the upper trendline on strong volume confirms the bullish reversal

When to Trade It

Buy the breakout above the upper wedge trendline on strong volume. Stop below the most recent swing low. Target: retrace to the origin of the wedge.

EdgeOS integration: look for SCTR above 9, bull count 1–4, and confirmed/fluid bull trend to align the pattern signal with the EdgeOS system for highest-conviction entries.

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Frequently Asked Questions

What is the Falling Wedge pattern?

A falling wedge forms when price makes lower highs and lower lows within converging trendlines — but the highs are falling faster than the lows. This compression signals diminishing selling pressure and often precedes a bullish breakout.

How do I identify a Falling Wedge?

Both upper and lower trendlines slope downward, but upper line has a steeper slope Converging trendlines — the pattern narrows over time Volume typically declines as the wedge forms Breakout above the upper trendline on strong volume confirms the bullish reversal

What is the win rate for the Falling Wedge pattern?

The Falling Wedge has a historical win rate of 62% when traded correctly with volume confirmation and proper stop placement. Average bars to target: 16. Always combine with trend context and market regime for best results.

Which stocks are showing a Falling Wedge right now?

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Pattern detections updated nightly · For informational purposes only · Not investment advice