Broadening ascending wedge3/16/2024 ![]() ![]() Technical indicators and trend parameters are calculated for the close ofīusiness day indicated on the top right corner of the screen. Weekly Broadening Ascending Wedges Patterns Screener # 2 For the best results, chart patterns and trend resistance support should be considered together with other technical analysis signals and technical trading techniques. Situation usually generates divergence on long-term indicators. # 1 As a reversal formation, Broadening formation Pattern appears in a mature trend,Ĭharacterized by overbought/oversold long-term and short-term indicators. One of the boundary lines is horizontal, is referred to as a right-angled formation.īroadening formations usually mark the reversal when confirmed by other technicalīroadening formations Screening page presents a list of stocks forming Broadening formation Pattern. They start with narrowįluctuations, and then widen out between diverging boundary lines. Its opposite is the pattern in a Right-angled ascending broadening wedge.Chart Analysis and Chart Pattern Recognition – Broadening Formationsīroadening Formations, including Broadening Ascending Wedge, present inverted triangle patterns. ![]() Low riskĭisadvantage: Bearish exits in 37% of casesįor your information: The pattern in a right-angled descending broadening wedge is a reversal pattern. Objective: Opposite boundary of the triangle then possibly theoretical objective of the patternĪdvantage: The amplitude of the movement will be significant in the event of a bounce towards the opposite terminal. Stop loss: The stop loss is placed below the last lowest point Objective: Theoretical objective of the patternĪdvantage: Minimum objective very often achieved (90% of cases) and pullbacks are infrequent The aggressive strategy:Įntry: Opening a long position on the 3rd contact with the support line Stop loss: The stop loss is placed below the resistance Pullbacks are detrimental to performance Trading strategies with right-angled descending broadening wedges The traditional strategy:Įntry: Opening a long position at the resistance break ![]() Bullish breaks occur in 75% of cases in the upper third of the annual range The configurations that perform best are those that are preceded by a large movement before the triangle is formed. The movement is greater in a bullish breakout Bullish exits perform better bearish exits In 23% of cases, there is pullback in the case of a bullish exit and 33% in the case of a bearish exit Comments on a right-angled descending broadening wedge In the event of a downward exit, the percentage drops to 70%. In 90% of cases, the minimum objective of the pattern is achieved by using the technique of the maximum height of the triangle. In 57% of cases, there is a bullish exit Ascending wedges can occur when a market is rising or falling: When a market is in an uptrend, they’re a sign that traders are reconsidering the bull move. This pattern can appear in both uptrends and downtrends and is a favorite among traders who rely on technical analysis. Imagine a wedge that’s getting wider hence the term broadening. Here are some statistics about a right-angled descending broadening wedge: The broadening wedge pattern is a chart pattern that’s characterized by diverging trend lines. Graphic representations of a right-angled descending broadening wedge Statistics of a right-angled descending broadening wedge Another technique consists in plotting the maximum height of the triangle at the break out point. The price objective is given by plotting the top point of the triangle at its start where it breaks out. Although one might think that this pattern is a reversal pattern because of its shape, it is more a sign of a weakness on the part of sellers beginning a bearish trend. The formation of this pattern has to be preceded by a bullish movement. If the chart pattern is not spotted quickly, the movements may appear totally random and thus trap many investors. The right-angled descending broadening wedge reflects the growing nervousness of investors and also their indecision. Each line must be touched at least twice to be validated. The oscillations between the two triangle terminals are therefore becoming increasingly large. The pattern is formed by two diverging lines, the resistance being a horizontal line and the support a bearish downward slant, so it is an inverted ascending triangle. What is a right-angled descending broadening wedge?Ī right-angled descending broadening wedge is a bullish reversal pattern.
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