![]() Prices return to the lower trend line, then rebound and zoom up again to The chart also shows a similar situation that occurs earlier in the price pattern, around the start of the new year: That rising price trend fails to touch the upper trend line. As prices descend,they pierce the lower trend line and continue moving down. After touching the lower trend line,prices again move up but fail to touch the higher trend line. Start of a new price trend: the partial rise. Although a reversal is not always the case, nor is the formation required to be at the end of a rising price trend, both situations occur more often than not.įigure 5.2 also shows an interesting pattern that is key in identifying the The formation appearsĪt the end of a rising price trend and signals a reversal. Theprice action alternates and is contained by two nonparallel trend lines.Figure 5.2 shows a better example of a broadening wedge, with two upsloping trend lines where the slope of the top trend line is much steeper than the bottom one.įigures 5.1 and 5.2 both show a similar situation. That is why it is called an ascending broadening wedge. The chart looks like a pie-shaped wedgethat slopes uphill. Once prices pierce thebottom trend line, they drop rapidly. Together, the twotrend lines spread out over time but both slope upward. The first thing you notice is the two sloping trend lines thetop one has a slightly steeper slope than the bottom one. What does an ascending broadening wedge look like? Consider the chart patternin Figure 5.1. Surprising findings Pullbacks hurt performance but breakout day Performance rank 14 out of 21 20 out of 21 Reversal or continuation Short-term bearish reversal Patterns withĪppearance Same, but breakout is downward. Surprising findings Throwbacks hurt performance. Performance rank 6 out of 2310 out Break-even failure rate 2% 0% Reversal or continuation Short-term bullish continuation ![]() Appearance Prices follow two up-sloping trend lines that
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |