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Ascending Broadening Wedge

DXY - D1 - ASCENDING BROADENING WEDGEToday, we are looking at the Dollar Index (DXY) from Monthly to Daily. MONTHLY : Strategically bullish, supported Under by a double bottom pattern (@0.892090), trigger level confirmed for a technical target of 97.67 ! September, end of the month closing @ 94.24, above the MBB = positive signal WEEKLY : Double bottom clearly identified, followed by a gradual recovery supported by firstly the uptrend line and by the Mid Bollinger Band too. Currently above TS but still inside of the clouds and the Lagging line still below the clouds Therefore, in this time frame, in order to confirm further upside, we need to see : 1) Breakout of the clouds resistance area, currently around 95.00 2) Confirmation by the Lagging line cross over above the clouds too Such kind of price action would open the door for 96.10 (50 % Fib retracement) ahead of 97.72 (61.8% Fibonacci retracement and also the double bottom technical target previously mentioned on M1 comment. Warning : Last price action triggered a "Doji" pattern which, for the time being is not a trend reversal signal yet but this should be watch at very carefully DAILY : Ascending broadening wedge price action in progress which is usually BEARISH ! Watch carefully upcoming day (s) price action, as a failure to hold above TS would be the first signal of a short term reversal (tactically) which would be confirmed by a breakout of the Mid Bollinger Band, currently @ 93.50 (of course on a daily closing basis !) Monitor also closely the price action through the technical indicators which will allow you to detect early potential reversal signal (s) such as for example bearish divergence ! As usual, watch also closely shorter time frames to get intermediate clues for further direction. Ironman8848
TVC:DXY
by Ironman8848
Broadening Wedges - Advanced AnalysisIn our previous post in this series about chart patterns we described the characteristics, rules, and causes of triangle patterns (if you haven't seen it, see the related idea below). In this post, we perform an advanced analysis of broadening wedges patterns. We provide a description of each pattern and its implications. We also review the literature in order to find their deterministic cause. 1. Broadening Wedges Broadening wedges are characterized by price variations laying within one support and resistance, both having the same direction and broadening over time. As such the apex of the support/resistance in a broadening wedge is located to the left. Broadening wedges must not be confused with other broadening formations. While they all have a broadening characteristic they can have different identification rules Broadening wedges are classified depending on the direction of the support/resistance. 1.1 Ascending Ascending broadening wedges mostly occur during uptrends with rising local maxima (higher highs) forming an upward sloping resistance and raising local minimas (higher lows) forming an upward slopping support. The slope of both the support & the resistance should be significantly different from 0. Bulkowski suggests the price needs to test the support and resistance three times each. Additionally, the resistance should be steeper than the support. Volume tends to increase during the formation of such pattern. Ascending broadening wedges have a bearish bias with breakouts mostly occurring downward. Downward breakouts are often followed by a decrease in price. Example of an ascending broadening wedge followed by a downward breakout on SOLUSDT 4h. 1.2 Descending Descending broadening wedges mostly occur during downtrends with declining local maxima (lower highs) forming a downward sloping resistance and declining local minimas (lower lows) forming a downward slopping support. The slope of both the support & the resistance should be significantly different from 0. Similarly to ascending broadening wedges, Bulkowski suggests the price needs to test the support and resistance three times each. Additionally, the support should be steeper than the resistance. Volume tends to increase during the formation of such pattern. Descending broadening wedges have a bullish bias with breakouts mostly occurring upward. Upward breakouts are often followed by an increase in price. Example of an ascending broadening wedge followed by a downward breakout on AVAX 1h. 2. Partial Rises/Declines Partial rises/declines are phenomena described by Bulkowski in broadening formations and are described as being common. Partial rises/declines often indicate the direction of a breakout. Partial rises commonly occur in broadening ascending wedges, price bounces off the support, moves towards the resistance without reaching it, and go back to the support. We can expect a potential downward breakout after that. Note that a partial rise always starts from the test of the support. Partial declines commonly occur in broadening descending wedges. The price bounces off the resistance, moves towards the support without reaching it, and then goes back to the resistance where we can expect a potential breakout upwards. Note that a partial decline always starts from the test of the resistance. Partial rises and declines can offer a better price to buy/sell instead of waiting for a breakout. 3. Measure Rule The measure rule for broadening wedges allows us to determine the position of a take-profit/stop-loss. For a broadening ascending wedge the measure rule would place our take profit at the lowest low inside the formation. Selling directly after a partial rise would allow for higher profits. For a broadening descending wedge the measure rule would place our take profit at the highest high inside the formation. Selling directly after a partial decline would allow for higher profits. Certain analysts close trades caused by partial rises/declines when the price reaches the support/resistance of the wedge, opening a new position in the case of a breakout while using the metric rule for setting their take profit. 4. Causes Of Broadening Wedges Bulkowski offers a description of the causes of broadening wedges in the market in terms of the market participant's behavior. The cause of an ascending broadening wedge is a surge from an initial buying impulse, driving the price higher. Momentum traders follow the initial impulse further pushing prices up. Contrarian traders judge the price to be trading above its intrinsic value, selling and thus creating a decline in prices. However, before the decline reaches the previously established low, certain market participants buy again. These participants can be composed of initial buyers, accumulating positions, or late traders seeing the potential to buy at a better price. This allows the creation of a new impulse, with only a divergence left. This scenario eventually repeats itself with increased volume, causing impulses and retracements of higher magnitude reinforcing a positive feedback loop until the price is judged overbought even by initial buyers. A broadening falling wedge follows the same scenario structure but with sellers instead of buyers. 5. Other Observations The amplitude of the cyclical variations within a broadening wedge increases over time, thus potentially highlighting volatility clusters in higher time-frames. Another interesting observation that can be made is that prices within a broadening wedge are subject to heteroscedasticity (variability is not constant, it increases inside a broadening wedge), while prices inside a channel are homoscedastic (variability remains constant). This concept is inherent to regression analysis. 6. Conclusion In this post we described broadening wedge patterns in depth. We have highlighted partial rises/declines as well as how the measure rule applies to such patterns. We then focused on showing how market participants act during the formation of broadening wedges. Note that unlike triangles patterns we did not find a significant amount of studies mentioning such patterns, nor any agent models developed to describe their occurrence. 7. References (1) Bulkowski, T. N. (2021). Encyclopedia of chart patterns. John Wiley & Sons.
LEducation
by LuxAlgo
45
DXY may go down from right hereDXY currently is in a 'hard-to-tell' situation as I was expecting it to jump to 93.7 which it didn't manage to achieve last week. However it did achieved 93.524 and fell after retest for the second time hitting exactly at 93.524. So my assumption here is that there's big sellers available at this level that managed to push price down. DXY is still in uptrend in general on daily and weekly chart. On lower time frames, it does look like that DXY failed to create higher high after revisiting 93.524 so I expect it to head south and retest previous lows. RSI on most times frames currently are above 54 indicating buying strength. However lower time frames RSI is heading down agressively, it's highly possibly to move down further comparing with it's historical RSI data. Ascending broadening wedge can be considered to support this analysis. However it may also be possible that the price wants to visit higher high at 94.290 which in my opinion is highly unlikely but it's month end, and Q4 start, so I bias in thinking long investors taking profits therefore pricing going down. So if US data and news goes negative this week, the price may go crazy as it's also profit taking week, things can go wild. Overall - I'm biased on bullish dollar so may simply bounce back up from any of these support zones before reaching to the lower end of the rising wedge. Note: I do not trade DXY. It's used as analysis support for other pairs. Disclaimer: Chart does not show future market prices, make sure you adjust your trades accordingly. No financial advise is given here. Manage money at your own risk. Never believe 100% accuracy. Don't
TVC:DXYShort
by mleader1
$XTZ huge uncertainty we have hereI am aware that analysing the market in its current conditions is tricky, but I just can't hold back. Most of the altcoins are showing weakness with previous movements of $BTC and financial market in general. Multiple altcoins and $BTC are drawing symmetrical triangles on a 1D timeframe and are in the middle of it which is why I think market can go any direction at the moment. But with $XTZ the situation is even trickier. We have two options from here. We are seeing Ascending Broadening Wedge on 1D timeframe and it went to the upper side of the channel according to my previous thoughts. Although, now is a completely different situation and this formation is ending most of the time with bearish movement. As we have been in this pattern for a long time, my thoughts are that we will retest the bottom line of the pattern and go down. I am almost certain that it will not achieve the full potential of the pattern. However, I think we will revisit the bottom line of the trend channel. The second option is that BINANCE:BTCUSDT will not continue the downside movement and we will go to the upper side of the Ascending Broadening Wedge up to the price of 9$. But for me this is not likely to happen. Keep a close look at the hidden bullish divergence on 1D timeframe. Entry zone of short position: 5.5-5$ Stop-loss: 5.75-6 (as we expect a small upwards squeeze to collect the SLs) Targets: 4.53 - 3.9 - 3.25 - 2.9 - 2.4 (and 2.1 as an extreme point which is not likely to happen) Even if I mentioned two options, I am voting for the first one. This is not a financial advice. Do your own research. These are just my personal opinions. Good luck.
by DeFi-tacular
4
ADAUSD Small Descending TriangleImportant things to note: We still have a giant ascending wedge (bearish) We have a small descending triangle (bearish) We have a doji candle yesterday on 1D chart (price reversal) Important Dates to Take Note of: BTC becomes legal tender in El Salvador Sep 7 2021 ADA Alonzo (smart contracts) go live Sep 12 2021 ADA Summit Sep 25-26 2021 So, the bad news first, obviously we have the looming ascending wedge that has been forming. However a break from the wedge could be caught by a test on the 200MA or the main trendline so you will need to set alerts for that. The good thing about that is there will be little pain, but you need to watch those 2 lines because it can always fail the test and fall further (I am looking at around 2.20 if this occurs). There is a small descending triangle forming, you will need to watch for a break below the 2.90 price mark for this. Again, this will likely be the catalyst for the test of the 200MA and Main trendline. We will see what happens. If no patterns break and ADA continues to consolidate you will see a basing pattern that will likely push the price to the 3.16-3.24 target eventually. However, that would likely mark the end of this little journey upwards and the price will likely break soon after. A pullback will be needed eventually and like I always say, it is coming. Like I have said a million times by now, the flattening slope bothers me. I will continue to keep and eye on ADA. Make sure you set your alerts! Now for some good news. As a person who follows ADA closely, I know that the adoption of the platform will happen very quickly with the release of smart contracts on the 12th of September. In fact, I think it was built with such a great foundation, I might just do an entire post on the fundamentals of Cardano sometime in the future. Pretty soon, we will see NFTs being created, DeFi, applications being developed, and overall strong adoption of the ADA blockchain platform as a whole. If there will be any immediate reason for ADA to move higher, it will likely be news coming from the summit on the 25-26 of September. So I would keep an eye on their twitter accounts around that time. Again, I apologize for having less time to post at the moment, but that will change in a couple weeks. I am going to make a video soon teaching everyone my approach to charting. I will cover the entire workflow process I go through. I hope you enjoy it. Tell me what you think? This is not financial advice. DYODD.
KRAKEN:ADAUSD
by mysticalwalrus
22
NEOUSDT is creating an ascending channel 🦐NEOUSDT is creating an ascending channel 🦐 below the weekly resistance. IF the price is going to have a breakout from the channel and from the weekly, According to Plancton's strategy (check our Academy ), we can set a nice order ––––– Follow the Shrimp 🦐 Keep in mind. 🟣 Purple structure -> Monthly structure. 🔴 Red structure -> Weekly structure. 🔵 Blue structure -> Daily structure. 🟡 Yellow structure -> 4h structure. ⚫️ Black structure -> <4h structure.
Long
by InkyGrip
10
DON'T get wedgied! Peak excitement on Friday - as retail traders pumped various markets with billions in cash. This was alongside institutional traders who had been bailing out. Well, retail won a significant limb of this, from the bottom edge of what now looks like an ascending broadening wedge following a major bullish drive. Biden echoed the FED's mantra on transitory inflation in the last few days. That seemed to be a signal for retail traders on the apps to dive in. Ascending broadening wedges after long bull drives north, are usually a signal of weakness. Just to be clear (and read my disclaimer below), this does not mean that the market will crash now. Price could move significantly up and whipsaw the top of the wedge before heading for the moon! 🌛 This wedge formation creates probabilities. Probabilities exist in minds. The probability estimate based on this snapshot (right now), is for a significant correction. This is not advice! This is opinion - a very different thing to advice. How probabilities work : If 'you' estimate there is a 51% chance of a correction, that leaves a 49% chance there will be no correction. A lot of novice traders forget about the lesser probability, which does not favour their mindset. There are other silent probabilities adding up in the background (DYOR): 90 year economic cycle, coinciding with 20 and 10 year cycles - and we're not out of the woods with a major pandemic. We are at year 11+. Some say 'cycles mean nothing'. Everybody is entitled to their own belief. I think these are dangerous times to be throwing money into the market going long. If you are about to short this position, you have to have money that you can afford to lose. Read that again. If you can't lose money, stop trading - instantly! Alternative reasoned perspectives are most welcome. Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which has a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
WHSELFINVEST:USTECH100CFD
by Captain_Walker
$OXBR ASCENDING BROADENING WEDGE$OXBR ASCENDING BROADENING WEDGE, scaling up exponentially... CONSECUTIVE HIGHER BOTTOMS Oxbridge Re Holdings Limited, together with its subsidiaries, provides specialty property and casualty reinsurance solutions. It underwrites reinsurance contracts primarily for property and casualty insurance companies in the Gulf Coast region of the United States. The company distributes its products and solutions through reinsurance brokers. Oxbridge Re Holdings Limited was incorporated in 2013 and is headquartered in George Town, the Cayman Islands.
NASDAQ:OXBRLong
by BADQOMOCAWGOWLD