Two down-sloping, converging trendlines that usually resolve upward. A bullish pattern where selling exhausts into the apex — confirm with a breakout on volume.
7 min read Pattern Deep-Dives
Up
Typical breakout direction
~+32%
Average rise
~53%
Throwback rate
31 / 39
Bulkowski rank (bullish)
// key takeaways
▸ Both trendlines slope down but converge — lower highs and lower lows narrowing.
▸ Falling wedges are bullish and usually break upward.
▸ Momentum fades even as price drifts lower — a bullish divergence tell.
▸ Confirmation is a close above the upper trendline with volume.
Price grinds lower inside two down-sloping lines that gradually converge. Each new low comes with less momentum — the range tightens as sellers run out of conviction. When buyers finally overwhelm the drift, price breaks above the upper trendline and often accelerates.
The trading playbook
› Entry — on a close above the upper (falling) trendline with a volume expansion, or on the retest of that line.
› Stop — below the most recent low inside the wedge.
› Target — measure the height at the wedge's widest point and project it up from the breakout.
Wedge vs pennant vs channel
A falling wedge's lines both slope down and converge; a bull pennant's converge but come after a vertical pole; a channel's lines stay parallel. The wedge's tell is fading downside momentum into a narrowing range — a hint the decline is running out of fuel.
// common mistakes
✕ Confusing a falling wedge (converging) with a parallel down-channel.
✕ Buying inside the wedge before the upper line breaks.
✕ Trusting a low-volume breakout that fails the retest.
Frequently asked
See it live in the engine
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Educational content only — not financial advice. Pattern statistics reference Thomas Bulkowski (thepatternsite.com) and published technical-analysis literature.
