1️⃣ WHAT IS A FALLING WEDGE PATTERN?

The falling wedge pattern is a continuation pattern formed when price bounces between two downward sloping, converging trendlines .

It is considered a bullish chart formation but can indicate both reversal and continuation patterns – depending on where it appears in the trend.

2️⃣ WHAT IS A RISING WEDGE PATTERN?

The rising wedge (also known as the ascending wedge ) pattern is a powerful consolidation price pattern formed when price is bound between two rising trend lines .

It is considered a bearish chart formation which can indicate both reversal and continuation patterns – depending on location and trend bias.

Regardless of where the rising wedge appears, traders should always maintain the guideline that this pattern is inherently bearish in nature.