InvestDiva

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

CrowdStrike Stock (CRWD): The Move No One Is Talking About But Everyone Should Watch

November 14, 2025 No Comments

CrowdStrike is one of the biggest names in cybersecurity. They protect computers, cloud systems, and now even AI models. The company keeps growing fast, keeps making moves with giants like Nvidia and Google, and keeps expanding its platform into places most investors are not watching yet.

That is why this blog exists. There is a lot happening behind the scenes with CrowdStrike. Some of it is obvious. Some of it is quiet. Some of it could shape the future of the stock in bigger ways than the headlines show.

Read More »

Nvidia (NVDA) $5 Trillion Milestone Is Still Shaking Up Wall Street – Is This The Peak Of The AI Boom Or Just The Beginning?

November 8, 2025 No Comments

After a period of unstoppable momentum, Nvidia (NVDA) is once again dominating headlines – and it’s no wonder Wall Street can’t look away. Once known primarily for gaming graphics, Nvidia has transformed itself into the beating heart of the AI revolution.

Its playbook, centered on innovation, scale, and ecosystem control, has turned the company into one of the most valuable and influential forces in tech history. But as investors cheer its meteoric rise, the question now looms: is Nvidia reaching new heights of sustainable growth, or is it flying too close to the sun?

Read More »

Netflix Stock (NFLX): Exciting 10:1 Split. Not-So-Exciting Earnings. What’s Under The Surface?

October 31, 2025 No Comments

Netflix is one of the most recognizable companies in the world. It has a massive audience, strong brand awareness, and a long history of reshaping how we watch TV. Recently, Netflix announced a 10:1 stock split. A split does not change the value of the company, but it lowers the price per share and often makes the stock feel more accessible to everyday investors.

Read More »

Beyond Meat Stock (BYND) $900 Million Debt Deal News: Lifeline Or Last Gasp Before Collapse?

October 24, 2025 No Comments

After months of steep declines and fleeting meme-fueled rallies, Beyond Meat (BYND) is once again in the spotlight – this time for its massive $900 million debt-for-equity deal. Once celebrated as the face of plant-based innovation, the company now finds itself fighting for survival amid collapsing sales, widening losses, and a heavily diluted shareholder base.

Read More »

Ferrari Stock (RACE) Plunged Hard. Is It A Short-Term Drop Or A Long-Term Decline?

October 16, 2025 No Comments

Ferrari. A name that evokes speed, luxury, and precision.
But lately, its stock has been running into some rough turns.

After hitting record highs earlier this year, Ferrari’s share price took a sharp dive following its Capital Markets Day. Investors were caught off guard. Expectations were sky-high, and the company’s updated targets didn’t quite match the market’s adrenaline.

Read More »