TRADING GLOSSARY
Falling wedge
A falling wedge forms when price moves downward between converging trendlines, with the upper boundary falling more steeply than the lower boundary. It is commonly interpreted as a bullish reversal or continuation pattern, depending on context, although price may continue falling.
EXAMPLE
In a hypothetical market, lower highs and lower lows form an increasingly narrow decline, followed by a move above the upper trendline.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure