Falling Wedge Pattern
High Probability Setup Criteria
To increase the likelihood of success, traders look for:
Established prior trend: Usually forms after a downtrend (reversal pattern) or during an uptrend (continuation pattern).
Converging trendlines: Price compresses tighter over time.
Volume contraction: Declining volume during the pattern and a volume spike on breakout.
Breakout confirmation: Bullish breakout above the upper trendline with strong volume.
Support levels nearby: The wedge forms near a known support zone or Fibonacci level.
