Falling Wedge

The tell: Highs and lows both falling but converging — each push down travels less.

What it looks like

A downtrend whose highs and lows both fall but converge — each push down travels less, and the candles shrink.

Why it works

Sellers are still in control but visibly losing force; the shrinking range shows momentum bleeding out. The first real bid snaps the upper line.

Entry

Break of the upper (falling) trendline.

Stop

Below the wedge's final low.

Target

The origin of the wedge — where the decline started.

How it fails

Converging patterns break both ways — no trade until the upper line actually breaks.

Reading it in a textbook is not the same as spotting it live. Drill the falling wedge on charts generated fresh every time, or try today’s five.