Falling wedge

Example

Say a stock makes lows at $30.00, $28.50 and $27.80 while its highs fall faster, from $36.00 to $32.00 to $29.50. Each new low gives up less ($1.50, then $0.70), and the gap between the two lines narrows from $6.00 to $1.70. A close above the upper line, such as at $29.80, would confirm the bullish read of the wedge; until then, the stock is still in a downtrend.

Hypothetical numbers, for illustration only.