Imagine you're watching a seesaw. Normally, the seesaw goes up and down freely. But what if someone slowly pushed one side down while holding the other side up? That's kind of like a falling wedge in the stock market.
A falling wedge is a price pattern where the price of a stock seems to be going down overall, but the highs and lows get closer and closer together as time goes on. This creates a wedge shape that slopes downwards. Even though the price is going down, a falling wedge is often seen as a bullish sign, meaning the price might go up soon.
This is because the shrinking price swings suggest that the selling pressure is weakening. However, keep in mind that technical indicators like falling wedges aren't guaranteed to be right. It's always a good idea to do other research before you invest in anything.
