The configurations that perform best are those that are preceded by a large movement before the triangle is formed. The movement is greater in a bullish breakout Bullish exits perform better bearish exits In 23% of cases, there is pullback in the case of a bullish exit and 33% in the case of a bearish exit Comments on a right-angled descending broadening wedge In the event of a downward exit, the percentage drops to 70%. In 90% of cases, the minimum objective of the pattern is achieved by using the technique of the maximum height of the triangle. In 57% of cases, there is a bullish exit Here are some statistics about a right-angled descending broadening wedge: Graphic representations of a right-angled descending broadening wedge Statistics of a right-angled descending broadening wedge Another technique consists in plotting the maximum height of the triangle at the break out point. The price objective is given by plotting the top point of the triangle at its start where it breaks out. Although one might think that this pattern is a reversal pattern because of its shape, it is more a sign of a weakness on the part of sellers beginning a bearish trend. The formation of this pattern has to be preceded by a bullish movement. If the chart pattern is not spotted quickly, the movements may appear totally random and thus trap many investors. The right-angled descending broadening wedge reflects the growing nervousness of investors and also their indecision. Each line must be touched at least twice to be validated. The oscillations between the two triangle terminals are therefore becoming increasingly large. The pattern is formed by two diverging lines, the resistance being a horizontal line and the support a bearish downward slant, so it is an inverted ascending triangle. What is a right-angled descending broadening wedge?Ī right-angled descending broadening wedge is a bullish reversal pattern.
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