A worked example that explains the rule, not a stock price. The circle marks the first close beyond the level. The blue line is the target. The orange line is the invalidation. Prices are in the right-hand column, and sessions sit under the volume bar.Hollow green candles closed above their open, and filled red candles closed below it.
Numbers in the example chart
From the same calculation that draws the shape and writes the "Measuring the target" section below.
Trigger level
$68.4 · at the close of session 62
Target
76.2$
Invalidation
66.4$
Pattern height
7.8$
Chart span
76 sessions
What it is
Highs and lows both fall, and the highs fall faster so the range contracts. A decline losing strength: the seller pushes price down with shrinking effort.
ContractionHighs fall faster, so the range narrows · the seller pushes with shrinking effort. ⚠ The difference from a falling channel is the contraction: a channel keeps its width.
BreakoutAbove the upper edge on high volume.
Recognition rules
Two converging downward lines · the upper one is steeper.
Both range and volume contract.
Confirmation is a breakout above the upper edge on high volume.
Measuring the target
The wedge's maximum height is added to the breakout point.
Where it fools you
It is often confused with an ordinary falling channel. The difference is the contraction: a channel keeps its width, a wedge narrows. Without measurable contraction, you are trading a downtrend and calling it a reversal.
Open the daily timeframe for any symbol and draw the pattern yourself. Your drawing is saved per symbol in your browser, and the terminal does not name or detect the pattern.
╱ TrendlineLows fall slowly and highs fall faster
⇕ MeasureTarget equals pattern height
We do not detect chart patterns with a numeric rule: telling them apart takes judgment on the chart. Candlestick patterns with a numeric rule are detected daily by the candlestick pattern scanner.
We use cookies and Google tools to measure visits and campaign performance, so we can build what actually helps you. The platform works fully whatever you choose. Details
Hello 👋Our team is online now
Ask us about the free trial, subscribing or a specific tool, and we will walk you through it step by step.
Before you go
Get the market reading when it's worth sending
We don't send daily just to fill your inbox. When the market read changes enough to deserve attention, it reaches your email, along with the data it was built on.
We don't share your email with anyone · every message has a one-click unsubscribe link
