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Falling Wedge Reversal Pattern

Falling wedge reversal pattern is formed at a bottom of a downtrend, indicating that an uptrend would come next.

The falling wedge serves as a reversal signal. After a downtrend, the price made lower highs and lower lows.

Notice how the falling trend line connecting the highs is steeper than the trend line connecting the lows.

Upon breaking above the top of the wedge, the pair made a nice move upwards that’s approximately equal to the height of the formation.

In this case, the price rally went a few more pips beyond that target!

Strength of a bullish and bearish candlesticks