$BTC
$BTC is forming Ascending Broadening wedge pattern in the 1h time frame , Lets go straight into chart and understand What is Ascending Broadening Wedge Pattern ?
Lets start-
An ascending broadening wedge pattern is a bearish chart pattern (to be a reversal pattern). It is formed by two diverging bullish lines.
An ascending broadening wedge is confirmed or valid if it has good oscillation between the two upward lines. The upper line is the RESISTENCE line; the lower line is the SUPPORT line.
Each of these lines must have been touched at least more than twice to validate the pattern.
Important - a line is said to be "valid" if the price line touches the support or resistance at least 3 times.
This means the ascending 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.
An ascending broadening wedge does not mark the exhaustion of the buying current, but the sellers’ ambition to take control. The divergence of the two lines in the same direction , informs that the price continues to increase with movements that are increasingly high in magnitude. The buyers manage to make the price rebound on the support line but lose control after the formation of a new highest point. The lowest point reached during the first correction on the ascending broadening wedge’s support line forms the support. A second wave of increase then occurs with more magnitude, signaling the loss of buyers' control after a new highest point. A third wave is formed afterwards but buyers lose control again after the formation of new highest points.
During the formation of an ascending broadening wedge, volumes do not behave in any particular way but they increase strongly when the support line breaks.
As usual Every traders must wait break out either up or down side and confirmation .
Do You Own Research #DYOR
Not a Financial Advice #NFA
