Trend continuation VS Trend reversal pattern

26 lis 2016

Although both patterns formation is quite same.

1. Ascending broadening wedge ( Trend reversal pattern )
2. Expanding triangle ( Trend continuation pattern )

Ascending broadening wedge forms with the divergence. If 1st impulse is sharp then it gives signal that trend is going to reverse.

Expanding triangle forms most of the time against the divergence. If expanding triangle forms corrective wave at top then it gives signal that price is going to continue with the previous trend.

26 lis 2016

Uwaga

I hope this example will help much better. Expanding triangle. (Trend continuation pattern )

26 lis 2016

Uwaga

I hope this example will help much better. Ascending broadening wedge. ( Trend reversal pattern )

26 lis 2016

Uwaga

ascending broadening wedge with divergence.

26 lis 2016

Uwaga

This idea is based on my understanding of markets and you can agree or disagree with it you have full right to agree or disagree mate.