Chart Analysis and Chart Pattern Recognition – Falling Wedge Pattern.
A falling wedge pattern
is a triangle formation with noticeable slant to the downside. It represents the
loss of the downside momentum on each successive low and has a bullish bias.
The falling wedges pattern usually marks a reversal in a downtrend. In an uptrend, the falling wedge pattern is considered as a continuation pattern. As with other triangle formations, volume
usually diminishes as price rise and then increases during the breakout.
Falling Wedge Screening page presents a list of stocks forming Falling Wedge Pattern.
# 1 To confirm the loss of the downside momentum at the reversal point, see bullish divergence
on technical indicators.
# 2 For the best results, chart patterns should be considered together with other technical analysis signals and technical trading techniques.
Stock Chart Patterns.
The price chart is the result of the activity of all market
participants. It reflects periods of high expectations,
greed and fear. As with most emotional human activities, it
presents different patterns. Chart analysis and pattern recognition provide
useful information for technical analysis, trend analysis, and market
timing signals for technical trading.
Trendlines and chart patterns can be analyzed in different time
frames: from intraday, daily and weekly frames, up to
multi-year patterns. It is the best practice to
analyze patterns in conjunction with other technical
Each price pattern is formed by several smaller sub
waves. At least 3 – 4 subwaves are required to perform
a reliable pattern screening. We use a minimal required number of sub
waves for an earlier pattern recognition screener. On the other
hand, a pattern formed with more subwaves is more