Identifying a Right-Angled Broadening Wedge
Right-Angled Broadening Wedges come in two varieties, ascending and descending. They consist of a horizontal trend line and a sloping trendline .
The Ascending Right-Angled Broadening Wedges (ARABW) have an ascending trendline above the horizontal trendline with price action in between.
The Descending Right-Angled Broadening Wedges (DRABW) have a descending trendline below the horizontal trend line with price action in between.
With both versions price broadens over time.
Prices should be seen to touch both trendlines twice. Two touches to form the horizontal trendline and two touches to form the sloping trendline .
Breakouts from these two patterns often follows a partial rise or a partial decline.
What is a partial rise or decline?
After the two trendlines have been formed the pattern can be identified. When price rises off the lower trendline , and doesn’t reach the upper trendline before falling back to the lower trendline . This is a partial rise.
When price falls off the upper trendline , and doesn’t reach the lower trendline before rising back to the upper trendline . This is a partial decline.
More often than not a breakout from the pattern will follow.
The partial rise or decline never happens after the breakout.
Right-Angled Broadening Wedges come in two varieties, ascending and descending. They consist of a horizontal trend line and a sloping trendline .
The Ascending Right-Angled Broadening Wedges (ARABW) have an ascending trendline above the horizontal trendline with price action in between.
The Descending Right-Angled Broadening Wedges (DRABW) have a descending trendline below the horizontal trend line with price action in between.
With both versions price broadens over time.
Prices should be seen to touch both trendlines twice. Two touches to form the horizontal trendline and two touches to form the sloping trendline .
Breakouts from these two patterns often follows a partial rise or a partial decline.
What is a partial rise or decline?
After the two trendlines have been formed the pattern can be identified. When price rises off the lower trendline , and doesn’t reach the upper trendline before falling back to the lower trendline . This is a partial rise.
When price falls off the upper trendline , and doesn’t reach the lower trendline before rising back to the upper trendline . This is a partial decline.
More often than not a breakout from the pattern will follow.
The partial rise or decline never happens after the breakout.
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OK. Its over. That was the pullback.
OK. Its over. That was the pullback.