VincePrince
Education

How to Trade Broadening Formations.

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
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Hello traders investors and community.
Today I show some important trading formations which can help to identify a profitable trading entry in the markets.
These types are when confirmed highly probable trading set-ups to open whether a LONG or SHORT position.
In volatile markets, these formations can develop quite often.

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1.) Ascending Broadening Wedge
2.) Descending Broadening Wedge
3.) Broadening Wedge Bottoms
4.) Broadening Wedge Tops
5.) Ascending Right-Angled Broadening Formations
6.) Descending Right-Angled Broadening Formations

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1.) Ascending Broadening Wedge
These wedges most often break-out in the direction where they came from. So it is a wise idea to trade the break-out in the direction, otherwise,
swing-trades can be traded from trend-line to trend-line in the broadening wedge .

The target is the full height of the pattern, from the lowest low to the highest high forming the trendlines . Identifying tradable ascending broadening wedges
can provide good risk and reward trades with high profit.

2.) Descending Broadening Wedge
This Wedge is similar to the Ascending Broadening Wedge .

We are looking for two touches for each trendline before a reversal and breakout happen as shown in my chart. The Breakout can be traded with a minimum
target of the percentage distance from the full height of the pattern, from the lowest low to the lowest high.

3.) Broadening Wedge Bottoms
Broadening Wedge Bottoms are as you can see in the picture provided in my chart. Reversals marking a significant reversal after a downtrend. The bottom is
formed with three touches of the lower trendline and three touches of the higher trendline .

The target is the highest high in the pattern minus the lowest low in the pattern.

4.) Broadening Wedge Tops
Broadeing Wedge Tops are similar to Bottoms. They develop in a rising trend forming higher highs and lower lows in a broadening scale-like seen in the
picture. Three higher highs marking the upper boundary of the formation and two lower lows marking the lower boundary of the formation.

The target projection is the same as with broadening bottoms.

5.) Ascending Right-Angled Broadening Formations
They develop with a horizontal trendline and a sloping trendline . The price broadens over time in the formation forming three lows and two highs as you can
see in the chart.

The wedge breaks in the direction where it came from and can be traded either with swing trades in the wedge or with a breakout entry to
trade the breakout.

The target is the height of the complete wedge at the breakout point and is projected from the breakout in the breakout direction to determine the
minimum target.

6.) Descending Right-Angled Broadening Formations
These are the same as Ascending Right-Angled Broadening Formation just with a little different structure. Here we have a horizontal lower trendline and
a sloping higher trendline which are forming the overall formation. We see two touches of the lower trendline and three touches of the higher trend-line
just as with the Ascending Right-Angled Broadening Formation.

The price projection is also the same and the formation can be wisely traded in the breakout direction.
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If you like this tutorial feel free to support my work.
Thank you.
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“The eye sees only what the mind is prepared to comprehend.”
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"I wait until the money is ready and I just have to go there to pick it up. In the meantime, I do not do anything."
Great work
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Nice done
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It is really helpfull. Thank you
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Should #6 really be a horizontal higher trend-line and sloping lower trend-line?
+1 Reply
👍👍👍 I hope to be able to have your vision
Reply
great work
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great work! thanks
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