Falling Wedge
ChartBullishReversalReliability:
Two down-sloping trendlines that converge; despite falling prices it is usually an exhausting structure that reverses higher.
Description
Both highs and lows fall, but the upper edge is steeper, narrowing the range. It appears in downtrends (reversal) or uptrends (continuation).
Market psychology
Each down-leg shrinks and momentum contracts, showing sellers are running out even as price still slips lower.
How to trade
Wait for a close above the upper edge; the target is often around the top of the wedge. Momentum divergence reinforces the case.
Confirmation
A close above the upper edge, often with rising volume on the break.
Also known as: Descending wedge
Educational content only — not financial advice. Cryptorua reads public market data and never places orders.