Read Falling Wedge Chart Pattern

How to Analyze Falling Wedge Chart Pattern

Falling Wedge Pattern

The falling wedge pattern is formed in a downwards trend & this falling wedge chart pattern portrays that the downward trend direction of price move is going to continue.

Falling wedge pattern portrays that there is a price support zone that the sellers keep pushing - each time moving this price support level lower - & once this price support zone breaks - the price will continue moving downward.

The falling wedge pattern support level temporarily prevents the price from declining & moving lower, while the descending sloping line above the falling wedge chart pattern portrays that bears are still present.

A downside price penetration of the lower line of the falling wedge chart pattern is interpreted as a sell signal for price breaking out downward from a falling wedge chart pattern - this indicates the downwards trend will continue & selling will follow.

Falling wedge pattern is found within a downwards trend - falling wedge chart pattern forms as a price consolidation period within the downward trend & this falling wedge chart pattern shows a downside trend continuation will follow.

How Do I Interpret Falling Wedge Chart Pattern - Read Falling Wedge Chart Pattern?

The price formed a falling wedge chart pattern during its downwards trend which led to further selling after a price breakout downwards and a continuation of the down-wards trend.

The sell signal gets generated when the price breaks the lower horizontal sloping line of the falling wedge chart pattern as selling resumes to push the price lower - continuation of the down-wards trend.

Read Falling Wedge Chart Pattern