Below you can find basic principle of the pattern:
This type of pattern appears during the correction in a movement, it is a continuation pattern. Resumption of the movement after correction.
The break in the resistance line definitively validates the pattern.
The price objective is given by plotting the wedge’s maximum height onto the breaking point
NB: pullbacks are harmful to the pattern’s performance.(No pull back yet which making the trend stronger)
Statistics of the after a movement.
- In 79% of cases, the exit is .
- In 23% of cases, a occurs in a consolidation movement.
- In 81% of cases, the pattern's price objective is achieved when the resistance line is broken.
- In 40% of cases, the price makes a pullback in support on the descending broadening wedge’s resistance line.
In respect to this pattern, the projected target for now will be towards 28k-30k which will likely happen before March 2021.
This should be achieve soon as the pattern already in play with the previous rally top been taken out.
Kindly go through the chart and do leave your comments about the expressed view.
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