Trend continuation VS Trend reversal pattern

26 Nov 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 Nov 2016

Nota

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

26 Nov 2016

Nota

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

26 Nov 2016

Nota

ascending broadening wedge with divergence.

26 Nov 2016

Nota

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.