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EDUCATION: BULLISH TREND- REVERSAL AND CONTINUATION PATTERN.

FX:EURAUD   Euro / Australian Dollar
Mostly both patterns are look same, but it isn't.

1. Ascending broadening wedge ( Trend reversal pattern)

2.Expanding triangle ( Trend continuation pattern)

Jun 09
Comment: ASCENDING BROADENING WEDGE: ( Trend reversal pattern)

This pattern comes with triangle and narrow edges. Most of the points contacted the resistance and support.

If the signal, hit resistance 3rd time means, its a Best place to sell (shown in graph)
In-case the first impulse is sharp, then signal leads the trend in reverse.

That impulse tends a correction, and reverse the trend.

STRATEGY FOR A TRADE.

The common strategy is, wait for the break-out confirmation. Break through after the impulse.
Example for reversal pattern.
Jun 09
Comment: EXPANDING TRIANGLE: ( Trend continuation pattern)

Moreover, its similar to the reversal pattern. But here Support plays an important role.

If the signals hit the support for 3rd time or more than that means, its a best place to BUY (shown in graph)

If the expanding triangle forms a corrective wave at top means, the market going to continue the previous pattern.

Example for trend continuation pattern.

Jun 09
Comment: I hope this will give you a clear differences between these two charts.

GOOD LUCK.

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