Falling Wedge

Falling Wedge
A wedge design isgenerally known as the chart pattern in which the trend of the stock is reversed when the pattern gets confirmed. On the other hand a falling wedge can be a continuation pattern or a reversal pattern, which depends on the prevailing factor of the trend. Evenif this wedgecan be found in uptrends as well as downtrends and therefore may mean a reversal or a continuation. If this wedge takes place in an uptrend, the falling wedge acts in the same manner to a pennant and forms an important part of the continuation style, however, this type of wedge should take place in downtrend. For determining the expectations of the breakout of the falling wedge, at first the attention should be paid to decide whether it takes place while continuing the falling wedge.