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Descending Broadening Wedge

📢 The Broadening FormationA technical chart pattern recognized by analysts, known as a broadening formation or Megaphone Pattern, is characterized by expanding price fluctuation. It is represented by two lines, one ascending and one descending, that diverge from each other. This pattern typically appears after a significant increase or decrease in security prices and is denoted by a sequence of higher and lower turning points. Normally this pattern is visible when the market is at its top or bottom. The greater the time frame is better the pattern will work. 🔹How to identify Generally, the Broadening Formation consists of 5 different swings. But the swing has to have a minimum of two higher highs and two lower lows. A trend line is drawn by connecting point 1 and point 3 while points 2 and 4 are also joined together to draw a line. These two lines create a shape that looks like a megaphone or inverted symmetric triangle. These swings’ highs and lows have to close above or below its pivot line and therefore they will create swing high as pivot high (R1, R2, and R3) and swing lows as pivot lows (S1, S2, and S3). A breakout occurs when the line does not respect its support or resistance line and closes outside the shape after making the 5th swing. 🔹Volume Volume plays an important role when it comes to the recognition of this pattern. In the Broadening Top, volume usually peaks along with prices. An increase in the volume, on the day of the pattern confirmation, is a strong indicator. 🔹Failures This pattern also can be traded when it fails but is necessary to identify the failure perfectly. A failure can be spotted when it fails to break the trend line (upper or lower as the case may be) after completing the 5th swing. Suppose in a bull market condition, this pattern is formed and if it fails to break the upper trend line, traders go short when the price goes below 3rd swing high (R2). Similar is the scenario, when the market is in a bear phase and it fails to break the lower trend line (S2), traders take a long position when the price closes above the 3rd swing high. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
SPX500USD: Partial Decline With Two Bullish HarmonicsWe have a Bullish Gartley on the 30 Minute and a medium sized Bullish Shark on the Daily within the local range above the support zone. If we can trade back above the zone marked in the white box on the bottom right chart we will likely reconfirm our partial decline from there and breakout of the overall Descending Boradening Wedge and go for Macro Targets between the 1.13 and the 1.618 Extension of the previous Local High to Low which would take us to the Halfway and Full Measured Moves of the Descending Boradening Wedge Respectively.
OANDA:SPX500USDLong
by RizeSenpai
DASHUSD - Descending Broadening Wedge On the Dash chart, a descending broadening wedge has appeared (1h-timeframe). A descending broadening wedge is a bullish reversal pattern. The trade can be entered once the price breaks out of the pattern to the upside. The target is the height of point B. At the moment the price is overbought when looking at the RSI. In our opinion, the price is going to drop a little bit. After that, it could be possible that the price is going to break out straight away or it might retest. This is the reason why there're two paths drawn on the chart. See all further details on the chart. Goodluck!
KRAKEN:DASHUSDLong
by vf_investment
5
PYPL: A classic Descending Broadening Wedge!• PYPL is doing a Descending Broadening Wedge in the weekly chart; • This week it went up almost 20%, and it is in a key resistance area, made by the upper purple trend line and by the 21 ema; • In theory, PYPL would correct next week, however, if the bullish momentum persists, PYPL would break this Descending Broadening Wedge, and in this scenario, the next resistance is the $122 (green line); • The volume is increasing, which reinforces the idea of a breakout; • For now, let’s pay attention to this resistance area. Remember to follow me to keep in touch with my analyses!
NASDAQ:PYPL
by Nathan_The_Finance_Hydra
The Dow Jones Has Bullishly Confirmed A Partial DeclineBoth the DJI and the SSPX have been trading within this Descending Broadening Wedge since the year begun and both have shown Bullish Variables that have allowed it to hold above a Horizontal Support Level. In this time The Potential for a Partial Decline has made itself present on the chart but the SPX has yet to confirm the Partial Decline of the Descending Channel. However, where the SPX has so far failed to the Dow has Succeeded in that it has come back up to challenge the Supply Line of the Broadening Wedge after having failed to come back down 100% of the way to test the Demand Line thanks to it being held up by a strong weekly horizontal support level and some strong amounts of Bullish Divergence at that very level. If we are to go by Bulkowski's statistics for Descending Broadening Wedge Partial Declines the DJI now has an 87% chance of successfully breaking out of the Wedge to the upside. The measured move for such a pattern would take us back up to the inception of the pattern. I personally will be targeting the 0.886 and 1.13 Retraces. Hopefully this will be a sign of things to come to the SPX which is still trading near it's Equally as Important Horizontal Support Level.
DJ:DJILong
by RizeSenpai
US30 seems to be bottomed out After bad CPI numbers US30 managed to get to 28600 which is previous low. Scenario 1. US30 is currently forming a kind of double bottom or "W" pattern, it will be confirmed as it breaks the neckline which is around 30312-30473. Breaking that zone would confirm that's its double bottom. Target of this pattern is usually the size from bottom to the neckline. which is at 32410. Scenario 2. As you can see only 4hour candle chart, US30 is also forming up descending broadening wedge i.e. bullish chart pattern (said to be a reversal pattern) breaking out of this and would make our new target on top of the descending broadening wedge. If you look carefully at fibs 0.382 (30790) seems to be like the important area which US30 must break and create support above it in order to move higher Entry: breakout of neckline TP1 : 0.618 fib (32129) TP2 : 32564 TP3 : 34296 S.L : 2% Remember I will be only taking trade as it breaks and creates support above the neckline Trade safe.
CAPITALCOM:US30Long
by itwasblue
1
The SPY Looks Like It Could Soon See $420-$425Rigtt now the SPX is trading inside a Descending Boradening wedge at a Previous Zone of Weekly Congestion and has Bullishly Engulfed the Weekly lows and held above said lows. So long as we can continue to hold these levels we should eventually see the top of the channel and previous Support/ Resistance level of $420-$425 and (if we are to aim for Full Measured Moves we'd expect to see $478.50 but for now lets just target $420-$425 then move forward from there); However any serious price action below this Congestion Zone would likely result in us fastly approaching the $200s, so to be safe i will Cut this Bullish Trade loose if we Break and Close Below the 200 Week Simple Moving Average.
AMEX:SPYLong
by RizeSenpai
3
MATIC Descending Scallop 4H Starting with a clean chart... A look at the weekly shows an extended V bottom, the V bottom is often seen as a recovery formation. Should the price fall below $0.52 I consider the formation eliminated. With the "extended" V bottom, the sideways (extended) consolidation phase serves as a pause and often resembles the shape of a channel or bull flag . I zoom in on the daily timeframe and also notice there in the tip of the V shape also a Smaller version of this Extended V Bottom Formation. On this timeframe we also find the zones where I expect possible resistance/support. And the Flip zone is an important one. Here the bulls need to claim the zone in order to stomp through. Also note that the MA50 and MA200 are already approaching each other and if they cross bullish , its gonna be an Golden Cross where the Death cross took place in early March and the previous Golden Cross in early January 2021. Or in other words that moment could be a bullish moment. On the 4 hours I mark the price by means of a Descending Scallop and in the background I have also drawn the Descending broadening wedge where the resistance line has been tested as a support line. in case of a breakout on the formation and a re-test, the price targets are mentioned. Also be sure to keep the big picture in mind there is still plenty of room towards the $0.23 mark. Keep calm, Do your own research! trade safe and manage your risk. (Disclaimer: This is not financial advice)
M
by Tims.Technische.Analyse.
MATIC Extended V Bottom 1DStarting with a clean chart... A look at the weekly shows an extended V bottom, the V bottom is often seen as a recovery formation. Should the price fall below $0.52 I consider the formation eliminated. With the "extended" V bottom, the sideways (extended) consolidation phase serves as a pause and often resembles the shape of a channel or bull flag . I zoom in on the daily timeframe and also notice there in the tip of the V shape also a Smaller version of this Extended V Bottom Formation. On this timeframe we also find the zones where I expect possible resistance/support. And the Flip zone is an important one. Here the bulls need to claim the zone in order to stomp through. Also note that the MA50 and MA200 are already approaching each other and if they cross bullish , its gonna be an Golden Cross where the Death cross took place in early March and the previous Golden Cross in early January 2021. Or in other words that moment could be a bullish moment. On the 4 hours I mark the price by means of a Descending Scallop and in the background I have also drawn the Descending broadening wedge where the resistance line has been tested as a support line. in case of a breakout on the formation and a re-test, the price targets are mentioned. Also be sure to keep the big picture in mind there is still plenty of room towards the $0.23 mark. Keep calm, Do your own research! trade safe and manage your risk. (Disclaimer: This is not financial advice)
M
by Tims.Technische.Analyse.
MATIC Extended V Bottom 1WStarting with a clean chart... A look at the weekly shows an extended V bottom, the V bottom is often seen as a recovery formation. Should the price fall below $0.52 I consider the formation eliminated. With the "extended" V bottom, the sideways (extended) consolidation phase serves as a pause and often resembles the shape of a channel or bull flag. I zoom in on the daily timeframe and also notice there in the tip of the V shape also a Smaller version of this Extended V Bottom Formation. On this timeframe we also find the zones where I expect possible resistance/support. And the Flip zone is an important one. Here the bulls need to claim the zone in order to stomp through. Also note that the MA50 and MA200 are already approaching each other and if they cross bullish, its gonna be an Golden Cross where the Death cross took place in early March and the previous Golden Cross in early January 2021. Or in other words that moment could be a bullish moment. On the 4 hours I mark the price by means of a Descending Scallop and in the background I have also drawn the Descending broadening wedge where the resistance line has been tested as a support line. in case of a breakout on the formation and a re-test, the price targets are mentioned. Also be sure to keep the big picture in mind there is still plenty of room towards the $0.23 mark. Keep calm, Do your own research! trade safe and manage your risk. (Disclaimer: This is not financial advice)
M
by Tims.Technische.Analyse.
1