As such the apex of the support/resistance in a broadening wedge is located to the left.īroadening wedges must not be confused with other broadening formations. We also review the literature in order to find their deterministic cause.īroadening wedges are characterized by price variations laying within one support and resistance, both having the same direction and broadening over time. We provide a description of each pattern and its implications. In summary, while both patterns involve broadening shapes with diverging or converging trend lines, an ascending broadening wedge suggests a bearish reversal, while a descending broadening wedge indicates a bullish reversal in market trends.In this post, we perform an advanced analysis of broadening wedges patterns. Traders might consider long positions when prices break above the upper trendline 4 5. Descending Broadening Wedge: It emerges after a downtrend and indicates a shift from bearish to bullish sentiment.Traders may enter short positions when prices break through the lower trendline 1 2 3. Ascending Broadening Wedge: This pattern typically appears at the end of an uptrend and signals a potential reversal to a downtrend.Descending Broadening Wedge: On the other hand, a descending broadening wedge is bullish and signifies a reversal pattern where bears lose control, and bulls start dominating the market, potentially leading to an upward breakout once confirmed 4 5.Ascending Broadening Wedge: It is considered a bearish reversal pattern that indicates sellers’ ambition to take control over buyers, often leading to a downward breakout after the pattern is confirmed 1 2 3.Descending Broadening Wedge: In contrast, a descending broadening wedge has two converging bearish lines where the upper line (resistance) slopes less steeply than the lower line (support), forming a broadening shape as the price fluctuates within these boundaries 4 5. ![]()
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