You need to have a series of lower highs followed by a series of lower lows, the more the better. Now, how to recognize the price structure of a falling wedge pattern? Falling wedge pattern Part two is the actual falling wedge pattern which looks like a triangle that is pointing down.The primary characteristic of a falling wedge pattern is that we need to have a bearish trend before the pattern develops.It’s important to recognize that the falling wedge pattern, it has two parts in its price pattern structure: Also, read about the Forex Mentors and the best investment you can make. This is because we’re dealing with a pure price action trading strategy.īefore we start covering in-depth the rules of the strategy, we’re going to define and learn how to recognize each one. Note* No technical indicators are required to trade the wedge trading strategy. Going forward, we’re going to focus on recognizing the falling wedge pattern and the symmetrical wedge pattern, and then we want to focus on how to effectively trade the strategy. Regardless of the market conditions, observing a falling wedge pattern provides a clear bullish signal due to its unique shape and price pattern. No matter what type of trader you are – swing trader, day trader, and scalper – you can make big profits trading the falling wedge pattern. Like most price patterns, you’ll be able to trade this pattern with any market and any time frame. They are almost identical patterns, but not quite the same. In this guide, we’ll teach you how to distinguish, the falling wedge pattern and the symmetrical wedge pattern.
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