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Broadening Formations, Right-Angled and Ascendingthepatternsite.com Broadening Formations, Right-Angled and Ascending: Trading Tips Measure rule: Compute the height from the highest peak (point A in the Measure Rule figure to the right) to the horizontal trendline (B) and multiply it by the above 'percentage meeting price target.' Add the result to the highest peak (A, upward breakouts) or subtract it from the horizontal trendline (B, downward breakouts) to get the price target (C). Intraformation trade: Buy at the horizontal trendline when price starts rising and sell or sell short once price turns at the top trendline. Buy at 3rd touch: When price touches the horizontal trendline for the third time and begins rising, buy. Partial rise: A partial rise works 61% of the time. Partial decline: A partial decline works 80% of the time. Price trend: The best performing patterns are those with a short-term (less than three months) rise leading to the pattern. Yearly high, low: Downward and upward breakouts perform best when the breakout is within a third of the yearly low. Volume trend: A downward volume trend results in the best postbreakout performance. Throwbacks and pullbacks: Throwbacks and pullbacks hurt postbreakout performance. Height, width: Tall patterns perform better than short ones. Wide patterns (both breakout directions) perform well.
KRAKEN:BTCUSDLong
by mfilippi
$DJI Broadening Top Pattern appearance Hello everyone, First of all excuse my english, plus, this is my first ever Tradingview idea I decided to publish. Yay! These days everyone talking about bear market is about to hit us, so I was like let me check $DJI and see if I can figure something :D I consider myself a beginner with technical charts & I really like classical pattern trading so I wanted to share this with you (feel free if you want to correct me or give me some information to add to my brain :D) This is a Weekly DJI chart that shows a Broadening Tops Pattern. this pattern appears like a (Megaphone with higher highs and lower lows that widen over time) and it considered a short-term bullish continuation. I am not sure what to expect here as we're very close to the resistance, however, I guess we would see a short-term decline to 25-28k levels (above 200-EMA) and then volatility might increase to see a breakout. However, someone would say, we can also see a breakout and a continuation of bull market. This is also possible. No one knows. All I can say that 2020 market is super special and I am glad trading it & I cannot wait to see what will happen. What do you think? & Happy Trading! Thanks,
TVC:DJI
by Elliotation
Pattern Cheatsheet: Identfying a Broadening Top PatternThe Broadening Top pattern appears when price makes a straight upwards run (similar to the "Flagpole" of a Bull Flag Pattern, then swings between two expanding broadening trendlines with at least 5 touches. It is a neutral pattern which means it can break out in either direction, on the bottom right examples i have explained how the pattern is identified, measured and traded for both Bullish & Bearish breakouts. The idea is to get a entry early by identifying the pattern, (point A) which allows for a better Risk:Reward ratio and closer stop loss. The second potential entry is at point B, which is considered a Bullish or Bearish retest ( Support/Resistance flip it is also known as), but this area is a bit risker and has less "room to move". The pattern can give a a sign that the price may have a higher chance in heading in a certain direction, and we can measure the height of the straight run upwards, aswell as the height of the two LARGEST SWINGS within the pattern to get two possible price targets ; one conservative and one less so. The Broadening Top appears frequently on Bitcoin & Ethereum and has one of the better success rates out of all the different Broadening Patterns and is one of the easiest to trade & identify because often it works similar to a Bull Flag pattern. If you found this idea informative, Dont forget to show your support by liking & commenting thank you traders!
Education
by Worth_The_Ri5k
INOV, Broadening Top (bearish)I found this pattern at tickeron website with the following data: STATUS = Confirmed CURRENT CONFIDENCE = 71% TARGET (EXIT) PRICE = 18.49 USD BREAKOUT (ENTRY) PRICE = 19.51 USD DISTANCE TO TARGET PRICE = 4.45% EMERGED ON = Nov 09, 07:00 AM (EST) CONFIRMED ON = Nov 10, 10:11 AM (EST) WITH CONFIDENCE LEVEL = 78% The Broadening Top pattern forms when a security price makes higher highs (1, 3, 5) and lower lows (2, 4) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Top from a Broadening Bottom is that the price of the security is rising prior to entering the pattern formation. This type of formation happens when volatility is high or increasing, and when a security’s price is moving with high volatility but little or no direction. It indicates growing investor nervousness and indecisiveness. Trade idea If the price breaks out from the bottom pattern boundary, day traders and swing traders should trade with a DOWN trend. Consider selling the security short or buying a put option at the downward breakout price level. To identify an exit, compute the target price by subtracting the pattern height from breakout point. The pattern height is difference between the pattern’s highest high and its lowest low. To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to buy back a short position or sell a put option at or above the breakout price.
IShort
by AlTorress
RCEL, Broadening Bottom (bearish) I found this pattern at tickeron website with the following data: STATUS = Confirmed CURRENT CONFIDENCE = 82% TARGET (EXIT) PRICE = 12.07 USD BREAKOUT (ENTRY) PRICE = 20.50 USD DISTANCE TO TARGET PRICE = 41.23% EMERGED ON = Oct 30, 12:00 PM (EDT) CONFIRMED ON = Oct 30, 03:39 PM (EDT) WITH CONFIDENCE LEVEL = 95% The Broadening Bottom pattern forms when a security price makes higher highs (2, 4) and lower lows (1, 3, 5) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Bottom from a Broadening Top is that the price of the security is declining prior to entering the pattern formation. This type of formation happens when volatility is high or increasing, and when a security's price is moving with high volatility but or no direction. It potentially indicates growing investor nervousness and a little indecisiveness. Trade idea If the price breaks out from the bottom pattern boundary, day traders and swing traders should trade with a DOWN trend. Consider selling the security short or buying a put option at the downward breakout price level. To identify an exit, compute the Target Price by subtracting the pattern height from the breakout point. Pattern height is a difference between patterns highest high and its lowest low. To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to buy back a short position or sell a put option at or above the breakout price.
NASDAQ:RCELShort
by AlTorress
$SAP #SAP ... all hands on deck! Support area is 89 -79 USDHi and welcome to my analysis on SAP (NYSE, USD). Yes, we had some news from the software provider that attracted sellers. Trading in Germany on XETRA is closed and no prisoners were taken... In my first chart you can see a broadening top in the stock. SAP was not able to activate this formation to the upside in September...the upper trendline produced heavy resistance and forced a minor reversal... In combination with a bearish engulfing pattern as per end of September... ...and last week's break below the KAMA21 the stage was set for a downturn... The lower megaphone supportline is at 89 USD...this is a target if the bears remain in control. POC (2016 to date) is showing the point of control around 79 USD. Would be nice if you support me with a thumbs up and follow me... Best, Tom Jansen Chief Investor-Guard © Copyright TA Investor-Guard 2020. Charts powered by TradingView. All rights reserved. The information provided here is of a general nature and not legal, tax or investment advice.
NYSE:SAP
by investor-guard
EIDX, Broadening Top (bullish) I found this pattern at tickeron website with the following data: STATUS = Confirmed CURRENT CONFIDENCE = 77% TARGET (EXIT) PRICE = 77.06 USD BREAKOUT (ENTRY) PRICE = 75.17 USD DISTANCE TO TARGET PRICE = 2.53% EMERGED ON = Oct 07, 12:00 PM (EDT) CONFIRMED ON = Oct 07, 12:12 PM (EDT) WITH CONFIDENCE LEVEL = 87% Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price by adding the pattern height (H on the chart) to the breakout price. The pattern height is the difference between the pattern’s highest high and its lowest low. To limit potential loss when the price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price. The Broadening Top pattern forms when the price of a security progressively makes higher highs (1, 3) and lower lows (2, 4) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Top from a Broadening Bottom is that the price of the security is rising prior to entering the pattern formation. This type of formation happens when volatility is high or increasing, and when a security’s price is moving with high volatility but with little or no direction. It can potentially indicate growing investor nervousness and indecisiveness.
ELong
by AlTorress
ZTS Broadening Bottom (bullish)I found this pattern at tickeron website with the following data: STATUS = Confirmed CURRENT CONFIDENCE = 66% TARGET (EXIT) PRICE = 166.29 USD BREAKOUT (ENTRY) PRICE = 162.17 USD DISTANCE TO TARGET PRICE = 2.83% EMERGED ON = Sep 24, 12:00 PM (EDT) CONFIRMED ON = Sep 28, 09:30 AM (EDT) WITH CONFIDENCE LEVEL = 74% A broadening bottom can be characterized as a bullish reversal pattern. It consists of two divergent lines that form a triangle. The movements between the two triangle sides increase as the pattern continues. Each side must be touched at least twice to be validated. The Broadening Bottom pattern is formed when the price of a security progressively makes higher highs (2, 4) and lower lows (1, 3, 5) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Bottom from a Broadening Top is that the price of the security is declining prior to entering the pattern formation. Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price by adding the pattern height (H on the chart) to the breakout price. The pattern height is the difference between the pattern’s highest high and its lowest low. To limit potential loss when the price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price. This type of formation happens when volatility is high or increasing, and when the price of a security is moving with high volatility but with little or no direction. It can potentially indicate growing investor nervousness and indecisiveness.
NYSE:ZTSLong
by AlTorress
XRP Bullish Descending Broadening Wedges XRP is not my favorite project but my investments are diversified and I think XRP is a category in and of itself (I'm here for the tech and wealth). This is not financial advice, only my opinions based off my personal research. Firstly I love Descending Broadening Wedges, they are very effective for calling bottoms, I have a chart where I called the absolute bottom of CRO which has been one of the top performers of 2020. I called CRO breaking out before it was announced as one of Teekas top 5 coins, and I did it with the pattern I am outlining now. Now what I am seeing is a set of Descending Broadening Wedges, a smaller one within a larger one. I am also seeing our price action on top of a important support, which is between .17458-.16656 (.16656 being the .236 of a down fib I plotted and the area I would put my stop loss under). It is interesting that our 1D candles have closed above the top of this support of .17458 ,which shows to have been a strong support historically, because our indicators also look bouncy in this area. The RSI hit 30.87 (Oversold),Our Stoch RSI has created a descending wedge and has flipped bullish to give us a hard buy signal today, MACD still shows selling pressure because it is reflecting the sell pressure we have already received (but I assume will flip soon). From a bearish prospective our price action is trading bellow the EMAs and we have been in a down trend for years, but I have some interesting information that indicates the bottom could be in for XRP. First on June 13 2020 the Poloniex BTC/XRP chart hit one of the strongest historic XRP supports and wicked extremely hard upward. Second if we do bounce significantly from this area through the major resistances above (The EMAs and tops of the Descending Broadening Wedges) then we will probably rocket upward based off the TA projections (1st Target .25 area / 2nd Target .30 area/ 3rd Target .34763/ 4th Target .49342). Third many things are happening within the Ripple/XRP world, some things I cannot bring up (Political moves being made within banks/Gov to garner Ripple/XRP support) not to mention the COVID19 need for digital currency, and lastly China/USA competition to be the first to control the 4th industrial revolution (CBDC, Reserve Currency, etc.). *Side Note watch BoA :)* (SHORT/ MEDIUM TERM) Oh yeah I really think institutions are looking for a back up plan, I think that they will use cryptocurrencies as a back up for when and if the stock market takes another drastic plunge. Meaning I could see institutions going deep into crypto and marketing cryptos on their platforms for retail traders and speculators to make Wall Street Money while stocks take a dive. Tons of money could flow into the crypto world, I don't see this as the endgame for XRP but I see it as the means to their end.
BITFINEX:XRPUSDLong
by Tachycardia
IPCA bullish flag break out The Major pattern is the Broadening pattern which stock is following since last year October 2019, it has almost doubled from then. but if you see from April2020, the stock was consolidating sideways forming channel pattern. So indirectly it contributed towards flag formation, it has broken upside. Technically, There are 2 Targets , Channel and Flag Formation T1 = 1900 T2 = 2400 ( I can't draw the target over here beacuse of screen Limitation) Duration: 3 Months Stoploss is below channel resistance Strategy : get to first target, take out the profit and if price is sustain over 1900 ,take the long position. After looking more than 90% of return from last year, T2 doesn't seems reasonable. But Current Business scenario of IPCA favours it to some extent. Reason : They are stronger in Biologics, Tommorow if any vaccine comes IPCA will definately contribute in "producing" it. They have something more to offer than "Hydroxy Chloroquine" See the Volume growth from April, Product basket and intrinsic capacity favours to get over current Pandemic.
NSE:IPCALABLong
by OK_Rane
Expending Triangule or Broadening?In my point of view, we are in an Expending Triangule with 3 major options: A ➜ If June ends above the US$ 9,750, breaking the market structure, the next target will be our all time highest high near to US$ 18,000, but I think its is Improbable. B ➜ Closing June bellow US$ 9,750, we will still inside this long bear trend, aiming to test the bottom of the triangle, but its very possible that movement is just a Beautiful Bear Trap, climbing fast the prices back to US$ 10,000 with a breakout in a few weeks, and our next target will be $17,800. C ➜ The saddest option, without strong bulls, the bears hit the bottom of the triangule, triggering several stops orders, backing us to 3 years ago with the prices in $ 1600 and then $ 800. So... What do you think?
BITSTAMP:BTCUSD
by RodrigoKazuma
1
Ethereum - Broadening Wedge PatternsBroadening Wedge Patterns - “Megaphones” A Broadening Wedge is a range where the price is holding between two trend lines that are moving apart. The pattern is also named a “Megaphones” because of its shape. These chart patterns are similar to triangles, wedges, flags and pennants. Broadening Wedges can be either Bullish or Bearish depending on how they form within an existing trend. There are some clues in the pattern itself that suggest whether the market is likely to continue the same trend or reverse. You can trade these chart patterns as range trades between the highs and lows of the support/resistance lines. They can of course also be traded as breakouts ==================================== Targets> Featured area - gray box BEARISH in the short term ADVANCED Long term ==================================== #ETH #ETHEREUM #ETHER #BUTERIN #VITALIK
BITMEX:ETHUSD.PShort
by BlackMEX
Macro Broadening Wedge Pattern| MA Support| Declining Volume Evening Trader’s What a historic day in Bitcoins price – assessing the situation, Bitcoin is trading in a probable broadening wedge pattern on the weekly timeframe. Points to consider, - Immediate trend parabolic - Resistance line tested - Moving Average support - RSI crossed 50 - Stochastics projected up - Volume tapering of BTC has had an insane pump from the low, consecutive weekly green candle closes breaking all structural resistances and cleaning up the CME gap. Current resistance being a staunched one was tapped, further solidifying its importance. The Moving Average, 21, visually coming in as support which can hold true for the time being. RSI has crossed 50, historically this indicates and uptrend on the weekly whilst this stochastics is projecting up, momentum is shifting. The bull volume nodes are declining with an evident volume climax on the lower timeframes, suggesting temporary top being in. Overall, in my opinion, BTCUSDT is due for a correction after this significant rise. The wick represents profit taking, BTCUSDT is not officially out of the woods until we break this pattern. What are your thoughts? Please leave a like and comment, And remember, “In order to succeed, you first have to be willing to experience failure.” ― Yvan Byeajee,
by The_Alchemist_Trader_
10
Bitcoin descending broadening wedge Bullish break out? 1DWith this being a Bitcoin halving year, I am still overall bullish, I will not flip flop easily on my overall bullish sentiment, like others every dip and pull back. I believe this could be a shake out still and profit taking time but we will see. We found support at 8600.00 BTC/USD area which was sitting upon the 200D EMA. I believe we need to hold this to continue feeling bullish, to confirm the upward bullish theory I have we need to break above 10030.00 BTC/USD area again and close candles. All indicators have cooled off and can support an upward bounce, but even if we bounce we will need to remember the top of the descending broadening wedge resistance line and reassess the chart once we get close to that area if we get there. This is not intended as trading advice, it is just technical analysis that I don't see anyone talking about.
COINBASE:BTCUSDLong
by Tachycardia
Eduational: Example of a descending broadening wedge. A descending broadening wedge is bullish chart pattern (said to be a reversal pattern). It is formed by two diverging bullish lines. A descending broadening wedge is confirmed/valid if it has good oscillation between the two upward lines . The upper line is the resistance line; the lower line is the support line. Each of these lines must have been touched at least twice to validate the pattern. NB: a line is said to be "valid" if the price line touches the support or resistance at least 3 times. This implies that the descending broadening wedge pattern is considered valid if the price touches the support line at least 3 times and the resistance line twice (or the support line at least twice and the resistance line 3 times). A descending broadening wedge does not mark the exhaustion of the selling current, but the buyers’ ambition to take control. The divergence of the two lines in the same direction (increase in price magnitude) informs us that the price continues to fall with movements that are increasingly low in magnitude. The sellers manage to make the price rebound on the resistance line but lose control after the formation of a new lowest point. The highest point reached during the first correction on the descending broadening wedge’s resistance line forms the resistance. A second wave of decline then occurs of more magnitude, signalling the sellers' loss of control after a new lowest point. A third wave forms afterwards but the sellers lose control again after the formation of new lowest points. During the formation of a descending broadening wedge, volumes do not behave in any particular way but they increase strongly when the support line breaks. source:Centralcharts
Education
by UnknownUnicorn3442968
5
LMNX Textbook Broadening Bottom PatternThis should be an interesting trade. Expect overcorrection because this stock is volatile. Maybe test with a small amount at a higher point (2) and put a joke stop-loss order somewhere around $20, fully hoping MMs take it out. Do not put a limit order down there or prices will never go down to that point. Instead, drop a market buy or complex option spread right when they try to bust the stop. Then place an imaginary stop order or alert below the prior low. The yellow boxes are where most retail options are set to expire worthlessly. Superstition maybe. Paranoia, perhaps? The market works against us traders. Ever hear of the 90/90/90 rule? 90% of traders lose 90% of their account in 90 days. The system is set up to help us fail. And we support it by trusting patterns like these. Not trading advice. Rampant speculation advice, it is.
NASDAQ:LMNX
by Hellork