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Falling Wedge (Reversal) - ChartSchool - StockCharts

Falling Wedge (Reversal) - ChartSchool - StockCharts -...

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18/2/2014 Falling Wedge (Reversal) - ChartSchool - StockCharts.com 1/4 StockCharts.com - ChartSchool Learn more about Technical Analysis and Charting Terminology You are here: StockCharts.com » ChartSchool » Chart Analysis » Chart Patterns » Falling Wedge (Reversal) Advertisement Falling Wedge (Reversal) The Falling Wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge. In contrast to symmetrical triangles , which have no definitive slope and no bias, falling wedges definitely slope down and have a bullish bias. However, this bullish bias cannot be realized until a resistance breakout. The falling wedge can also fit into the continuation category. As a continuation pattern, the falling wedge will still slope down, but the slope will be against the prevailing uptrend. As a reversal pattern, the falling wedge slopes down and with the prevailing trend. Regardless of the type (reversal or continuation), falling wedges are regarded as bullish patterns.
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18/2/2014 Falling Wedge (Reversal) - ChartSchool - StockCharts.com 2/4 1. Prior Trend: To qualify as a reversal pattern, there must be a prior trend to reverse. Ideally, the falling
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  • Spring '12
  • RamonBrunoTulibasJr.
  • upper resistance line, lower support line

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