Bear Wedge – Technical Analysis in a Bearish Market

A bear wedge is a pause in the current trend. The trend can either reverse or continue after its formation.

Also known as a falling wedge, it is very similar to a descending triangle in that you can draw two converging lines from a series of peaks and valleys. The difference is that, a descending triangle has one rising and one falling line, but in a bear wedge, both lines are moving in the same direction; Both lines are moving down.

Get my updates. Free.

Bear Wedge Metaphor

For shoe-loving Invest Divas, this could be the perfect metaphor so you don’t ever miss it on the charts! In a falling (or bear) wedge, both lines are falling, but one of them is steeper than the other, therefore they are not parallel:

Bear Wedge Pattern – Technical Metaphor

As we said before, a falling wedge can serve as either a reversal or a continuation pattern. This is how to distinguish the two: a falling wedge is a temporary interruption of an uptrend, but it is a reversal signal for a downtrend.

Live trading room: Join our Investing Group

In other words, if the bear wedge is formed during an uptrend, chances are, that the uptrend will continue after the completion of the wedge. If the wedge is formed during a downtrend, we can expect a reversal.

Bear Wedge During an Uptrend

In other words, after the falling wedge pattern is completed, the pair usually breaks out to the upside, regardless of the previous trend.

Bear Wedge During a

Downtrend

How to Make Some Pips off a Bear Wedge

As we have talked about this in our IDDA approach, this pattern is not confirmed until the resistance level is broken. Whether the falling wedge is a continuation pattern interrupting an uptrend or a reversal pattern during a downtrend, the pattern is considered bullish. Why? Because as you can see in the figures, every time the pair comes out of a falling wedge, it is likely to go up! Here are Falling Wedges in action:

Bear Wedge Reversed a Downtrend on Pound-Dollar Daily Chart

Here is how an Invest Diva would make money off a bear wedge, after checking with other forms of the Invest Diva Diamond, or the IDDA approach to trading:

1. Place an entry order to buy the currency pair above the upper line of the falling wedge

2. Set a limit to close the position at the price to which the pair has moved up the same amount as the height of the beginning of the formation.

3. Refrain from being greedy.

4. Enjoy you newly earned pips.

New to Trading? Beginners Video Course is For You

xoxo

Kiana 喜愛成
Get my emails | Follow on Twitter| Like on Facebook | Subscribe on YouTube

Kiana Danial

#1 Best Selling Author. Helping you accelerate your retirement with Triple Compounding™ Former engineer on a mission to help 1 million households take control of their finances. Founder & CEO of Invest Diva.

Bitcoin Drops Entering 2026: Is It Still Worth Investing? The Answer Most Investors Miss

January 2, 2026 No Comments

Bitcoin has entered 2026 under pressure, with prices pulling back after a volatile period that left many investors questioning whether the opportunity has passed. Headlines are once again split between fear and optimism, with some calling the recent drop a warning sign and others viewing it as a healthy reset.

Unlike speculative assets that rely on constant growth stories, Bitcoin’s relevance continues to rest on its role as a scarce, decentralised digital asset that operates outside traditional financial systems. The key question for investors now is not whether Bitcoin will remain volatile – but whether this moment represents risk, opportunity, or something most investors misunderstand.

3 Bullish And 3 Risky Forces Shaping American Express Stock (AXP) Into 2026

December 26, 2025 No Comments

American Express is often viewed as a mature, well understood credit card company, but its role in the financial system is broader than many investors realize.

It sits at the center of consumer spending, business payments, travel, credit risk, and data driven decision making. As these areas evolve, the dynamics shaping American Express stock are becoming more complex and, in some cases, less obvious.

Premium consumer behavior, business spending patterns, regulatory scrutiny, and technological change are all influencing how payment companies operate and compete.

Micron Stock Surges After Blowout Earnings: Is MU Still A Buy In 2026?

December 19, 2025 No Comments

Micron Technology (NASDAQ: MU) has quietly become one of the most important companies supporting the AI boom – even if it doesn’t receive the same attention as Nvidia or other high-profile AI names.

While much of the focus is on GPUs and AI software, Micron operates behind the scenes, supplying the memory that allows AI systems, data centres, and cloud platforms to function at scale.

Following a strong earnings update, Micron’s stock surged and quickly returned to the centre of market attention. The rally reflects growing confidence that the company’s strategic shift away from lower margin consumer products toward higher-value enterprise and data-centre memory is gaining traction.

Why Big Tech Is Quietly Buying Western Digital (WDC) Stock

December 12, 2025 No Comments

Western Digital Corporation (WDC) has been on a tear, its stock price soaring over 270% year-to-date as of early December 2025.

This massive growth isn’t just hype; it’s fueled by a perfect storm of events, including the strategic spin-off of its flash business, SanDisk, and an insatiable global demand for data storage driven by the AI revolution.

As a now “pure-play” Hard Disk Drive (HDD) manufacturer, WDC is uniquely positioned as the landlord for the internet’s exploding data. But with such a meteoric rise, is there still room for growth, or is the stock overheated?

Marvell (MRVL) Stock: The Hidden AI Powerhouse Wall Street Keeps Underestimating

December 5, 2025 No Comments

Marvell Technology (NASDAQ: MRVL) is quickly becoming one of the most important companies in the AI infrastructure space – even though many investors still aren’t sure what the business actually does.

While most headlines focus on Nvidia and its GPUs, Marvell builds the networking, optical, and custom silicon chips that help AI models move data faster and run more efficiently. In its latest earnings report, Marvell posted strong double-digit growth in its data center business and shared bold guidance for the next few years, sending MRVL stock higher.

2 Months Ago Oracle Stock (ORCL) Was Flying And Now… The Mood Has Flipped. Is A Comeback Still On The Table?

November 28, 2025 No Comments

Oracle is one of the biggest names in enterprise software and cloud services. They power databases used by governments, banks, hospitals, airlines, and global corporations. For years they were known for steady tech growth, not big surprises.

Then something wild happened.

Only two months ago Oracle stock was flying. Analysts cheered. AI deals stacked up. The company felt like it had finally stepped into a new era.

Now the mood has flipped.