Falling Wedge Breakout

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Falling Wedge Breakout

event Posted Jun 9, 2026 update Updated Jul 16, 2026
sellBreakout sellbullish sellwedge

Identifying the Pattern: Falling Wedge


A falling wedge is characterized by two converging, downward-sloping trendlines:

  1. The Resistance Line (Top): Connects lower highs.
  2. The Support Line (Bottom): Connects lower lows.

Because the resistance line slopes downward at a steeper angle than the support line, the price gets "squeezed" into a tight apex. In technical analysis, this indicates that while sellers are still pushing the price down, their momentum is fading. It is structurally a bullish reversal pattern.

Plan

  1. Identify the price has making LH, LL.
  2. Observe MACD and RSI. Both should inclining slowly
  3. All SMAs will get compressed
  4. Observe SMA, when the price ready to get out of the wedge, the price will climb and above them.
  5. The breakout usually will go quite high, so set TP accordingly based on the resistance.