What is Ascending wedge broadening Pattern ?
Today, we’re going to discuss about What is Ascending and Descending Wedge Broadening Pattern ?
Ascending Broadening Wedge
An ascending broadening wedge pattern is a technical analysis chart pattern that is formed by two diverging trend lines that are sloping upwards, indicating that the price of the asset is experiencing higher volatility and uncertainty.
The pattern is also known as an ascending wedge or a rising wedge, and it is usually considered a bearish reversal pattern. This is because the pattern is characterized by higher highs and lower lows, indicating that the buyers are losing momentum while the sellers are gaining strength.
Traders often look for a breakout below the lower trend line as a signal to enter a short position, as this suggests that the bears have taken control and are likely to push the price lower. However, it’s important to note that breakouts can sometimes be false signals, so traders should use other technical indicators and fundamental analysis to confirm their trading decisions.
What is Descending wedge broadening pattern ?
Descending Broadening Wedge
A descending broadening wedge pattern is a technical analysis chart pattern that is formed by two converging trend lines that are sloping downward, indicating that the price of the asset is experiencing higher volatility and uncertainty.
The pattern is also known as a descending wedge or a falling wedge, and it is usually considered a bullish reversal pattern. This is because the pattern is characterized by lower lows and higher highs, indicating that the sellers are losing momentum while the buyers are gaining strength.
Traders often look for a breakout above the upper trend line as a signal to enter a long position, as this suggests that the bulls have taken control and are likely to push the price higher. However, it’s important to note that breakouts can sometimes be false signals, so traders should use other technical indicators and fundamental analysis to confirm their trading decisions.
