![]() These are the moments that can make or break a trade. In the case of the broadening wedge, look for instances where the price has made a significant move either towards the support or resistance line, followed by a reversal. Broadening Wedge Pattern ExamplesĮxamples are the lifeblood of understanding any chart pattern. Volume often increases as the pattern develops, adding another layer of complexity to your analysis. Unlike other chart patterns like triangles, the lines here move away from each other. The main characteristic of an expanding wedge pattern is the divergence of its trend lines. Characteristics of an Expanding Wedge Pattern ![]() They define the boundaries within which the price action takes place. The support line and resistance line are the key players here. The trend lines drawn from these peaks and troughs will start to diverge, creating the broadening shape. The formation of an expanding wedge pattern starts with a series of higher highs and lower lows. For a deep dive into the rectangle pattern and how it contrasts with the broadening wedge, check out this guide. Understanding a variety of patterns can only enhance your trading toolkit. The rectangle pattern, for instance, offers its own set of trading opportunities and challenges. On a related note, the broadening wedge pattern isn’t the only formation traders should be aware of. Imagine a wedge that’s getting wider - hence the term “broadening.” This pattern can appear in both uptrends and downtrends and is a favorite among traders who rely on technical analysis. The broadening wedge pattern is a chart pattern that’s characterized by diverging trend lines.
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