FALLING WEDGE

FALLING WEDGE is a bullish pattern, wide at the top and narrower as prices move lower. The price action forms a cone sloping down as the reaction of highs and lows converge, there is no definitive slope and no bias. If the resistance is broken then we have a pattern. The falling wedge slopes down with the prevailing trend. 

Step 1-Prior Trend: the falling wedge  forms after an extended downtrend.

Step 2-Upper Resistance Line: At least two highs to create the upper resistance line. The later high is lower than the former high.

Step 3-Lower Support Line: At least two  lows to create the lower support line. The later low is lower than the former low.

Step 4-Contraction: The upper resistance line and lower support line make a cone.

Step 5-Resistance Break: the resistance line is broken to confirm the pattern.