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Wedgebreakout

The Descending Broadening WedgeA descending broadening wedge is bullish chart pattern (said to be a reversal pattern). It is formed by two diverging bullish lines. A descending broadening wedge is confirmed/valid if it has good oscillation between the two upward lines . The upper line is the resistance line; the lower line is the support line. Each of these lines must have been touched at least twice to validate the pattern. NB: a line is said to be "valid" if the price line touches the support or resistance at least 3 times. This implies that the descending broadening wedge pattern is considered valid if the price touches the support line at least 3 times and the resistance line twice (or the support line at least twice and the resistance line 3 times). A descending broadening wedge does not mark the exhaustion of the selling current, but the buyers’ ambition to take control. The divergence of the two lines in the same direction (increase in price magnitude) informs us that the price continues to fall with movements that are increasingly low in magnitude. The sellers manage to make the price rebound on the resistance line but lose control after the formation of a new lowest point. The highest point reached during the first correction on the descending broadening wedge’s resistance line forms the resistance. A second wave of decline then occurs of more magnitude, signalling the sellers' loss of control after a new lowest point. A third wave forms afterwards but the sellers lose control again after the formation of new lowest points. During the formation of a descending broadening wedge , volumes do not behave in any particular way but they increase strongly when the support line breaks. source:Centralcharts In 80% of cases, the exit is bullish. In 75% of cases, a descending broadening wedge is a reversal pattern. In 60% of cases, a descending broadening wedge’s price objective is achieved when the resistance line is broken. In 21% of cases, the price makes a pullback in support on the descending broadening wedge’s resistance line. This type of pattern appears during the correction in a bullish movement, it is a bullish continuation pattern. Resumption of the bullish movement after correction. The break in the resistance line definitively validates the pattern. The price objective is given by plotting the wedge’s maximum height onto the breaking point NB: pullbacks are harmful to the pattern’s performance. Statistics of the descending broadening wedge after a bullish movement - In 79% of cases, the exit is bullish. - In 23% of cases, a descending broadening wedge occurs in a consolidation movement. - In 81% of cases, the pattern's price objective is achieved when the resistance line is broken. - In 40% of cases, the price makes a pullback in support on the descending broadening wedge’s resistance line.
by TayFx
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The Ascending Broadening WedgeAn ascending broadening wedge is a bearish chart pattern (said to be a reversal pattern). It is formed by two diverging bullish lines. An ascending broadening wedge is confirmed/valid if it has good oscillation between the two upward lines. The upper line is the resistance line; the lower line is the support line. Each of these lines must have been touched at least twice to validate the pattern. NB: a line is said to be "valid" if the price line touches the support or resistance at least 3 times. This implies that the ascending broadening wedge pattern is considered valid if the price touches the support line at least 3 times and the resistance line twice (or the support line at least twice and the resistance line 3 times). An ascending broadening wedge does not mark the exhaustion of the buying current, but the sellers’ ambition to take control. The divergence of the two lines in the same direction (increase in price magnitude) informs us that the price continues to increase with movements that are increasingly high in magnitude. The buyers manage to make the price rebound on the support line but lose control after the formation of a new highest point. The lowest point reached during the first correction on the ascending broadening wedge’s support line forms the support. A second wave of increase then occurs with more magnitude, signalling the loss of buyers' control after a new highest point. A third wave is formed afterwards but buyers lose control again after the formation of new highest points. During the formation of an ascending broadening wedge , volumes do not behave in any particular way but they increase strongly when the support line breaks. This type of pattern appears during the correction in a bearish movement, it is a bearish continuation pattern. Resumption of the bearish movement after correction. The break in the support line definitively validates the pattern. The price objective is given by plotting the wedge’s maximum height onto the breaking point NB: pullbacks are harmful to the pattern’s performance. Statistics of the ascending broadening wedge after a trough - In 79% of cases, the exit is bearish. - In 23% of cases, an ascending broadening wedge occurs in a consolidation movement. - In 81% of cases, the pattern's price objective is achieved when the support line is broken. - In 40% of cases, the price makes a pullback in resistance on the ascending broadening wedge’s support line.
by TayFx
Keep on these points on intereset - Move incomingI have marked key points of interest with two phases of bullish & bearish potential outcomes. No fancy TA, just intuition based off of the previous price action. Bullish Scenario Breaking above the green trend line we can anticipate a bullish continuation of the micro trend Micro target 7700-7900 Macro target (if resistance is broken): 8300-8500 Bearish Scenario Breaking below the 6500 mark we can anticipate a bearing continuation of the macro trend Micro Target: 5700-5900. Macro target (if support is broken): 4900-5000 Thanks for reading :)
GEMINI:BTCUSD
by UnknownUnicorn5106171