Trend continuation VS Trend reversal pattern
Updated
Although both patterns formation is quite same.
1. Ascending broadening wedge ( Trend reversal pattern )
2. Expanding triangle ( Trend continuation pattern )
Ascending broadening wedge forms with the divergence. If 1st impulse is sharp then it gives signal that trend is going to reverse.
Expanding triangle forms most of the time against the divergence. If expanding triangle forms corrective wave at top then it gives signal that price is going to continue with the previous trend.
1. Ascending broadening wedge ( Trend reversal pattern )
2. Expanding triangle ( Trend continuation pattern )
Ascending broadening wedge forms with the divergence. If 1st impulse is sharp then it gives signal that trend is going to reverse.
Expanding triangle forms most of the time against the divergence. If expanding triangle forms corrective wave at top then it gives signal that price is going to continue with the previous trend.
Note
I hope this example will help much better. Expanding triangle. (Trend continuation pattern ) Note
I hope this example will help much better. Ascending broadening wedge. ( Trend reversal pattern )Note
ascending broadening wedge with divergence. Note
This idea is based on my understanding of markets and you can agree or disagree with it you have full right to agree or disagree mate.
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