Falling wedge

Spotting a falling wedge

• Lows keep falling, but each new low is only slightly lower than the one before.
• The ceiling slopes down more steeply than the floor, so the channel narrows.
• Look for at least two clean reactions on each boundary.
• Selling volume tends to dry up near the tip of the wedge.

The upside break

The pattern completes on a close above the upper line, better with rising volume. A common target is the wedge's starting high. A stop below the last low inside the wedge marks where the idea is wrong.

An early clue is a breakout candle that closes in its upper third: it shows buyers held the gains into the end of the period instead of fading them.

Two contexts, one pattern

After a downtrend a falling wedge acts as a reversal; inside an uptrend it acts as a pause before continuation. Either way, the break direction is what counts.

On BRVX

BRVX's chart runs from 1-minute to 1-month candles; a falling wedge on the 4-hour chart typically plays out over days, one on the weekly chart over months. Pick the timeframe that matches your holding period and draw both lines on BRVX's own chart.