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.
Sample still building: 11 eligible setups in the 2024-11-01–2026-10-26 source-bar window. Rates stay hidden until n=30. Historical and illustrative, not predictive.
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)
Breakout above the upper trendline on volume.
Below the most recent low inside the wedge.
Worked Example
ZION — flagged as a Falling Wedge on Oct 27, 2026 (score 55). 26 weekly bars with the 10-week SMA.
Entry / stop / target annotations are drawn for Pro members. Unlock →
Historical detection shown for education — not a current recommendation.
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. 10 historical signals.
| After | Median Return | % Positive | Sample |
|---|---|---|---|
| 5 sessions | -1.7% | 40.0% | 10 |
| 10 sessions | -0.1% | 50.0% | 8 |
| 20 sessions | -4.7% | 20.0% | 5 |
| 40 sessions | +3.1% | 75.0% | 4 |
Median best move inside 40 sessions: +4.3% · median worst drawdown: -6.5%. Past scanner behavior does not guarantee future outcomes. Not investment advice.
Today's Falling Wedge Setups — 14 found
| Ticker | Setup score | RS score | Trend |
|---|---|---|---|
| JKHY Jack Henry & Associates, Inc. | 54 | 37 | — |
| EW Edwards Lifesciences Corporation | 55 | 61 | ✓ |
| LLY Eli Lilly and Company | 55 | 87 | ✓ |
| NDAQ Nasdaq, Inc. | 55 | 65 | ✓ |
| RHI Robert Half Inc. | 55 | 92 | ✓ |
| SLB SLB Limited | 55 | 68 | ✓ |
| SWK Stanley Black & Decker, Inc. | 55 | 81 | ✓ |
| UNH UnitedHealth Group Incorporated | 55 | 68 | ✓ |
| ZION Zions Bancorporation N.A. | 55 | 55 | ✓ |
| ZBH Zimmer Biomet Holdings, Inc. | 54 | 52 | — |
| ITW Illinois Tool Works Inc. | 50 | 42 | — |
| MAS Masco Corporation | 48 | 56 | — |
| SPG Simon Property Group, Inc. | 47 | 48 | — |
| SYY Sysco Corporation | 40 | 40 | — |
All Falling Wedge Matches — 14 in the latest scan
Every match from the latest run, annotated with the detector's rails. Click any card for the full chart and trade plan.