![]() Usually the price is hitting higher highs on the top resistance line and higher lows on the bottom support line. ![]() The pattern itself is easy to spot as it resembles a megaphone. The pattern itself is simple to find as it resembles a megaphone. 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. The ascending broadening wedge is a chart pattern that can be traded in several ways either as a bullish/bearish breakout or with a swing trading strategy. The rising broadening wedge is a chart pattern that can be sold a number of ways either as a bullish/bearish breakout or with a swing trading strategy. The formation is identified by a series of higher pivot highs and. An ascending broadening wedge pattern is a bearish continuation chart structure. As it continues development, its trendlines diverge, and at the same time, both are rising. The Broadening Ascending Wedge (BAW) is not as well known as a Bear Flag, for example, however, it does seem to occur quite frequently in the crypto market. 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. Broadening Formation: A pattern that occurs during high volatility, when a security shows great movement with little direction. An ascending broadening wedge pattern begins narrower and ends wider while its support and resistance lines rise. 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. BITCOIN 1-Day Chart Analysis- As per CRYPTOCAP:BTC daily chart, Yearly Cycles running into Ascending Broadening Wedge pattern, then its final wave is nearby touched their support level and soon break-out up to 22.5k to 19.5k to complete its Bearish Zone cycle up to 5/7 sept. The ascending broadening wedge pattern indicates a potential selling opportunity after an uptrend or an existing downtrend. This pattern is created by two declining and diverging trend lines. ![]() A descending broadening wedge chart pattern is a bullish reversal pattern.
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