Trend continuation VS Trend reversal pattern

٢٦ نوفمبر ٢٠١٦

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.

٢٦ نوفمبر ٢٠١٦

ملاحظة

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

٢٦ نوفمبر ٢٠١٦

ملاحظة

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

٢٦ نوفمبر ٢٠١٦

ملاحظة

ascending broadening wedge with divergence.

٢٦ نوفمبر ٢٠١٦

ملاحظة

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.