![]() Click to view the visual candlestick index to make identification easier.If you prefer candlesticks, then visit over 100 of them in the alphabetical index.The alphabetical chart pattern index covers more topics than the visual index.It’s the opposite of the falling (descending) wedge pattern (bullish). Visit the visual chart pattern index to hunt for other chart patterns. The rising (ascending) wedge pattern is a bearish chart pattern that signals a highly probable breakout to the downside.A broadening wedge may also be a three rising valleys chart pattern.Take this slider quiz on ascending broadening wedges. ![]() Pattern pairs trading: ascending broadening wedges.Occur (because it is after the breakout), but it sure looks pretty on the chart. Technically, that means a partial decline did not This wedge is that a partial decline occurs after the breakout. The above figure shows an example of the ascending broadening wedge chart pattern. Continuations also work bestįor those, but only by one percentage point: 13% (for continuations) versus 12% (for reversals). For those which breakout downward, 81% of those act as reversals of the prevailing price trend. Broadening wedges don’t signify a period of consolidation. Instead of pointing towards each other, the support and resistance lines diverge hence the ‘broadening’ in the name. Reversals with gains averaging 42% versus 35%, respectively. What is the broadening wedge pattern The broadening wedge pattern is a type of wedge that looks a bit different to the ascending and descending variants. These links for throwbacks and pullbacks discuss performance.įor the patterns which breakout upward, 81% of them act as continuations of the prevailing price trend. The links on the left define throwbacks and pullbacks. This long and loose descending broadening wedge is typical for this chart pattern type. Throwbacks and pullbacks hurt post breakout performance. The link on the left provides statistics (probably outdated) and this link gives Performance improves when the breakout is within a third of the yearly high. Downward breakoutsĭo better with a short-term move (less than 3 months) leading to the pattern.ĭownward breakouts perform best when the breakout is within a third of the yearly low. The formation, ascending broadening wedge is called this because of its similarity to a rising wedge formation and then has a broadening price pattern. For upward breakouts, the best performing patterns are those with an intermediate-term (between 3 and 6 months) move leading to the pattern. ![]()
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