Falling Wedge

What it is

In a falling wedge both highs and lows move down, but the highs fall faster, so the range narrows and each new low gains less ground.

It is read as bullish once a candle closes above the upper line.

How ClosedCandle detects it

• Built from the last 4–6 confirmed swing pivots, with at least 2 touches on each side, each within 0.5× ATR of its regression line.
• Both lines slope downward (neither is flat within 0.6× ATR over the pattern) and they converge by at least 20%.
• Confirmed by a close beyond the breakout line; invalidated by a close beyond the other line, or after 30 candles (sooner if the lines meet first). The measured stop is the last pivot on the opposite side.
• Only closed candles are used; a wick through a line never counts. Once recorded, the detection is never changed.

Full methodology · how setups are measured.