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EDUCATION: TREND REVERSAL AND CONTINOUS PATTERN-BEARISH.

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Basically, the descending broadening wedge is opposite or mirror of ascending wedge pattern.

The descending broadening wedge is bearish in nature.

Though the pattern is typically possible for both reversal and continuous move.

In the above image, both are starts with the downtrend.But it varies by their action behaviours.

ADD ON: Before move on to the trade, you have to make sure at least 2(or) more points touched on both resistance and support. (shown in the graph)

Descending broadening wedge (Trend reversal pattern)

In reversal pattern, the signals used to move from the downtrend as impulse and tend correction.

Wedge widens as the two trend lines diverge from one another.

If you found another impulse inside the trend, which could enough to break the resistance means make a move without hesitance.

The momentum generates another correction on top and change trend flow.

Note: If the signals hit support for the third time means, its a perfect time for buy setup.

For Trade: Wait for the break out confirmation after the first impulse.

Trend continuation pattern

Like I said both patterns only differ from their flow behaviour.
Here, correction appears after the 1st impulse on the same trend flow. Mostly this will happen after a pullback from the current trend.

For Trade: Wait for the correction breakout confirmation after the impulse on the same trend flow.

I hope these live chart examples will help to learn more.

In reversal pattern, the impulse forms  a corrective structure on top and changed the trend flow

 

In continuous pattern, the impulse forms a corrective structure on the same trend.


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13 Jun 2018 4:50 pm 0 Posted by tamilforex

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