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What is the ascending broadening wedge?

The Ascending Broadening Wedge is a reasonably common chart pattern that many traders enjoy trading. Contrary to the Rising Wedge, in which price action contracts as the pattern matures, the Ascending Broadening Wedge widens as the two trend lines that have formed diverge from one another.

What is ascending broadening pattern?

Ascending broadening pattern belongs to the family of wedge patterns. Wedge patterns are either converging when the resistance and support lines gradually converge as the pattern progresses. Or broadening, where price volatility increases, and as a result, the upper and lower limit lines diverge from each other, creating an inverted triangle shape.

What is a rising wedge pattern?

A rising wedge pattern or also called ascending wedge pattern takes shape after a longer uptrend when the price makes higher highs and higher lows. All the highs and lows must be in-line, so they can be attached to a trend line. You cannot consider it a rising wedge pattern if these highs and lows are not in-line.

What is an ascending wedge in USD/CHF?

The ascending wedge occurs either in a downtrend as the price action temporarily corrects higher, or in an uptrend. Down here we have a USD/CHF daily chart. The price action is moving lower until a point when it creates a third in the series of the lower lows. Afterwards, the buyers start pushing the price again higher, creating a rising wedge.

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