As the descending broadening wedge pattern is forming trading volumes become most meaningful as the pattern breaks out above the upper trend line, this should happen on increasing volume showing that the chart is starting to go into an accumulation cycle. A Descending Broadening Wedgeis a bullish chart pattern that commonly takes place at the end of a bearish trend as a reversal pattern. The pattern usually forms at the end of a downtrend but can also occur as a consolidation in an uptrend. A descending broadening wedge forms as price moves between the upper resistance and lower support trend lines multiple times as the trading range expands during the downtrend in price. The descending triangle is a chart pattern used in technical analysis. This pattern is created by two declining and diverging trend lines. Hey traders, In this article, I will share with you the list of 4 best reversal price action patterns.
This pattern looks like a megaphone pointing down and to the right.Ī descending broadening wedge is looked at as a bullish pattern as it forms but it is not validated as a buy signal until the pattern starts to make short term higher lows and higher highs and the upper resistance trend line is broken and price begins to move to the upside and above the upper trend line. A descending broadening wedge chart pattern is a bullish reversal pattern. Price should touch each line 2 or 3 times to be considered a valid pattern. Ī descending broadening wedge forms as price moves between the upper resistance and lower support trend lines multiple times as the trading range expands during the downtrend in price. This pattern is created by two declining and diverging trend lines. Visual Appendix of Chart Patterns Broadening Bottoms Broadening Formations, Right-Angled and Ascending Broadening Formations, Right-Angled and Descending.
A descending broadening wedge chart pattern is a bullish reversal pattern.
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