Probable Descending broadening wedge in USDCHF : Long
The descending broadening wedge is considered to be a reversal pattern, and is bullish in nature. Though the pattern is typically a signal of reversal, continuation of the downtrend is still possible.
When present as a continuation pattern, the wedge will still slope to the downside, but the down-slope will typically be found as a pullback within an uptrend. When present as a reversal, the pattern will slope to the downside within a downtrend. Regardless of continuation or reversal, descending broadening wedges are always bullish in nature.
What we need to confirm :
Trend Established: As with any reversal, there needs to be an established trend to reverse. The descending broadening wedge can form on any time frame, and can mark the reversal of a short, intermediate, or long term trend.
Resistance Line: At least two highs are required to draw the upper resistance trend line. For the descending broadening wedge to be a valid pattern, price action should be creating lower highs.
Support Line: At least two lows are required to draw the lower support trend line. Price action should be creating lower lows in order for the pattern to be valid.
When present as a continuation pattern, the wedge will still slope to the downside, but the down-slope will typically be found as a pullback within an uptrend. When present as a reversal, the pattern will slope to the downside within a downtrend. Regardless of continuation or reversal, descending broadening wedges are always bullish in nature.
What we need to confirm :
Trend Established: As with any reversal, there needs to be an established trend to reverse. The descending broadening wedge can form on any time frame, and can mark the reversal of a short, intermediate, or long term trend.
Resistance Line: At least two highs are required to draw the upper resistance trend line. For the descending broadening wedge to be a valid pattern, price action should be creating lower highs.
Support Line: At least two lows are required to draw the lower support trend line. Price action should be creating lower lows in order for the pattern to be valid.
Aviso legal
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