Bullish Reversal
Intermediate
70% reliable · Bulkowski
Falling Wedge Pattern
Bullish pattern where both trendlines slope downward but converge. Price makes lower lows and lower highs, but the compressing range signals declining selling pressure, often preceding a reversal or trend acceleration.
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What's in the Falling Wedge lesson
- ▸Annotated chart with the Falling Wedge highlighted across the context candles.
- ▸Numbered identification rules covering body, shadows, color and position in trend.
- ▸The psychology of the formation: why buyers or sellers create this exact shape.
- ▸Practical tip on what to wait for before treating the pattern as a tradeable signal.
- ▸Quiz questions with explained answers, including this exact pattern.
Quick answers
Is the Falling Wedge pattern reliable?
The Falling Wedge has a 70% reliability rate per Bulkowski's encyclopedia, a statistical baseline. Confirmation candles and volume strengthen the read. The Candle Trader app has the full formation rules and a quiz.
What timeframes does the Falling Wedge work on?
Candlestick patterns work on any timeframe, from scalping (M1-M5) through day trading (M15-H1) to swing trading (H4-W1) and long-term investing. The shorter the timeframe, the more false signals. Always check higher timeframes for context.