What is an ascending broadening wedge?

NB: often, the steeper the ascending broadening wedge’s trend lines, the faster the price objective is reached. In 80% of cases, the exit is bearish. In 75% of cases, an ascending broadening wedge is a reversal pattern. In 60% of cases, an ascending broadening wedge’s price objective is achieved when the support line is broken.

How many broadening wedge patterns are there?

There are 6 Broadening Wedge patterns that we can separately identify on our charts and each provide a good risk and reward potential trade setup when carefully selected and used alongside other components to a successful trading strategy. The Ascending Broadening Wedge is one of six Broadening Wedge patterns to be found in price charts.

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 happens if you break the mid line of a broadening wedge?

Selling at a downward break of the mid line of the pattern greatly improves the odds of success. If the price breaks the mid line of an ascending broadening wedge, there’s a 53% chance that a further downward move will happen. See the final section. The second strategy is to trade it as a bullish continuation.