Declining Wedge Formations

Declining wedge formations have the following characteristics:
The stock market is falling in price.
Trendlines drawn across price highs decline at a constant angle, reflecting uniform selling.
Support trendlines, drawn at price lows, also decline, but a lesser angle than selling trendlines, indicating increasing eagerness on the part of buyers, who are hoping to accumulate stock. Therefore, rising and declining trendlines converge.
Trading volume decreases during the formation, indicating diminishing selling pressure. This is an important condition.
This pattern suggests that although selling pressures remain fairly constant, buying pressures are increasing; buyers are willing to step in at each minor cycle following less in the way of market decline. Tlus pattern, which usually resolves to the upside, carries bullish implication.
Wedge formations tend to be very reliable for short-term and day-trading operations. This is one of my favorite personal charting patterns for day-trading purposes.