The opposite of an ascending wedge pattern. A descending wedge pattern is a bullish technical indicator. They typically begin wide at the top and constrict as prices continue to lower. This action forms a triangle shape as the reaction highs and lows converge. They can be further broken into reversal or continuation patterns. However, no matter the type, falling wedges are regarded as a bullish trading pattern.
Descending Wedges
Market Terms
We don't know everything about the markets. We're just devoted to learning. Taken from those smarter than ourselves, here's how we define Descending Wedges.