13 — Bilateral & Wedge

Falling Wedge#

Bullish◐ Heuristic
◆ The PatternBoth lines slope down but converge — selling is exhausting

The Falling Wedge has both lines sloping downward and converging. Price is falling but the range is narrowing — sellers are losing conviction. Usually resolves with a bullish breakout.

Target = Breakout + Height of wedge at widest
Falling wedges in downtrends signal reversal; in uptrends, they're continuation patterns (a pullback before resuming).
// Falling Wedge — downward but exhausting
Key insight: The bullish resolution of a falling wedge is the mirror of the rising wedge's bearish resolution — both show momentum exhaustion.
Pattern bridge: Downward slopes narrowing — selling exhaustion. Like learning rate decay approaching convergence: the steps shrink but the model is almost there.
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Rising Wedge
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