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Falling Wedge Setup

Two converging downsloping trendlines with contracting volume — a wedge where each rally and pullback gets tighter. Despite the bearish-looking slope, the contraction signals exhaustion of supply. Resolves with an upside breakout.

Historical replay

Historical replay numbers are unavailable because the artifact is stale (source bars are 15 days old). The page does not substitute zeros or older results.

How this is measured →

Setup Criteria

  • Both upper and lower trendlines slope downward
  • Lines converge — pattern narrows over time
  • Volume contracts as pattern matures
  • Often forms inside a larger uptrend (continuation)
Entry

Breakout above the upper trendline on volume.

Stop Loss

Below the most recent low inside the wedge.

What Happened Next

Forward returns after the scanner first flagged a Falling Wedge (score ≥ 70, gatekeeper passed, one signal per base) — computed from stored daily bars, no lookahead. 7 historical signals.

AfterMedian Return% PositiveSample
5 sessions -3.1% 28.6% 7
10 sessions -0.9% 50.0% 6
20 sessions -0.4% 50.0% 6
40 sessions +7.1% 100.0% 4

Median best move inside 40 sessions: +8.1% · median worst drawdown: -3.9%. Past scanner behavior does not guarantee future outcomes. Not investment advice.

Today's Falling Wedge Setups — 2 found

Ticker Score RS Trend
DD DuPont de Nemours, Inc. 44.6 1.0
CF CF Industries Holdings, Inc. 55.0 55.0
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Pattern Diagram
Pattern Info
LegendLivermore
Difficulty Intermediate
Scanner ✓ Active