The Falco matchup revolves around getting Falco off the edge. When he's off, make sure you stay at the same vertical level as he is and get ready to b-air and side b's; chances are he's going to do it near the height of the ledge, but it's all variable. If he goes past the height of the ledge, sweetspot a b-air and jump back to the ledge. Falco's up-b has absolutely abysmal range; ledge drops to bairs can fend him off. If he phantasms back onto the stage above you (if he caught onto your ploy), mix it up; if you fake an edgeguard attempt and he side b's high then you have a free knee. It's much trickier to do than to say, but it does work.
As for spot dodging Falco's, dash-->slide--> up smash works well due to the strength and length of the attack. However, it only works if they spot dodge like crazy; they can reflector you away if they catch on to you.
It's a very difficult matchup, but it is winnable.