The falling wedge or descending wedge is a pattern that is often associated with a future upward trend. The fall wedge pattern is wide at the top and narrows down with the price fall. With the convergence of highs and lows, it creates a distinct downward-shaped cone.
The intersection between the support and resistance line results in a falling wedge pattern. The support line always follows the slope of the resistance line in a falling wedge. This results in either continuation or complete reversal of the trendline.
Some other distinguishing pattern includes the appearance of the falling wedge. With an uptrend, it showcases a continuous pattern while traders can expect a complete reversal with a downward appearance.
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