This is because a narrowing of the range in this situation means that the asset’s price correction is growing smaller, which means that there will be a strong rally. The falling wedge pattern is seen to be a bullish pattern if it comes with an upward shift in market momentum.This is because a declining range indicates that bearish sentiment toward an asset is waning. A falling wedge is seen as a reversal pattern when it shows up amid a downward shift in market momentum. When the price of a security repeatedly strikes lower highs and lower lows, constricting the range of the price movement, the falling wedge, also known as the declining wedge pattern, emerges.The falling wedge is a reversal pattern that slopes downward in line with the general trend. The falling wedge will continue to slope downward as a continuation pattern, but the slope will be downward against the existing uptrend. Although the falling wedge is discussed in this article as a reversal pattern, it may also be classified as a continuation pattern.This bullish bias won’t materialize, though, until a breakdown of resistance takes place. Falling wedges feature a clear downward slope and a bullish tendency in contrast to symmetrical triangles, which lack both. As the response highs and reaction lows converge, this price action shapes a cone that descends. A bullish pattern called the Falling Wedge widens at the peak and narrows as prices fall.