Bulkowski's Falling Wedge Quiz

This is a falling wedge (C). Price follows two converging and descending trendlines which join at an apex sometime in the future. The volume trend is downward 75% of the time leading to the breakout. In this example, the only hint of a falling volume trend are the three volume spikes at B (otherwise it looks flat). The measure rule, which is really a guideline, says price should rise (for an upward breakout) at least to the price at the top of the pattern (C). A downward breakout happens at A, and that's unusual because it occurs just 32% of the time.

Find as many falling wedges as you can but also find a diamond bottom, v-bottom, and double top.

Here are the patterns. A and B are the falling wedges. CD is a double top. E is the V-bottom and F is a diamond even though I cut through the top spike. Yes, you may have to use your imagination on the diamond...

Find a falling wedge and a descending scallop.

A is the falling wedge. B is the scallop. The wedge breaks out upward at C. How far will price rise (pick 1, 2, 3, or 4, one of the green lines).

Line 4 is the correct answer. Price at A climbed to the top of the pattern, fulfilling the measure rule, before dropping to B and busting the pattern.