> Falling wedge as a reversal vs. continuation pattern
`As a reversal pattern`
`Location:` Occurs at the end of a prolonged downtrend.
Signal: The narrowing price action and declining volume suggest that sellers are exhausting their momentum. The pattern is completed when the price breaks above the upper resistance line, signaling a potential bullish reversal.
`As a continuation pattern`
`Location: `Appears after a strong uptrend.
Signal: The falling wedge acts as a temporary consolidation or pause in the current trend. The price then breaks out to the upside, continuing the original uptrend. everyone
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.