The falling wedge pattern is bullish. When combined with the rising wedge formation, these two form a powerful pattern that indicates a change in trend direction. A falling wedge pattern is generally considered a reversal pattern, though there are instances where it facilitates the continuation of the same trend.
The falling wedge pattern appears when the asset's price moves in an overall bullish trend before correcting lower. Two converging trend lines are drawn within this pullback. The consolidation phase ends when the price action breaks through the upper trend line, or resistance of the wedge.