Reversal · Bullish · Medium reliability
Falling Wedge Pattern Explained
Break above the upper line can signal bullish reversal.
What it looks like
Both boundaries slope downward and converge — often appears late in a decline; upside break can signal bullish reversal.
Often late in downtrends — upside breaks can be sharp.
Visual example
Illustrative geometry on ChartNox charts — not a live trade signal.
How to identify it
- Both boundaries slope down and converge.
- Often appears late in a decline.
- Break above resistance can signal reversal higher.
When the read is wrong
Invalid if price breaks down and holds below the wedge.
Common mistakes
- Mistaking it for a descending channel. Wedge lines converge; channel lines stay parallel.
- Calling the turn before price breaks above the upper line.
Questions and answers
Is a falling wedge bullish?
Usually yes. Although price is falling, the read turns bullish when it breaks above the upper line.
How do you tell a falling wedge from a descending triangle?
A descending triangle has a flat bottom. In a falling wedge both lines slope down.
Ask ChartNox AI about Falling Wedge
Open the tutor with this pattern pre-seeded. Educational coaching only — not a trade recommendation.
- How do I identify a Falling Wedge on a chart, step by step?
- What usually invalidates a Falling Wedge pattern?
- What mistakes do beginners make with Falling Wedge?