Symmetrical triangles represent areas of indecision in which the forces of supply and demand are nearly equal. Each new summit is lower than the previous one and each new low is higher than the previous one, thereby taking the form of a triangle. This indecision ends when the forex price ascending wedge pattern forex through the triangle.
Statistics demonstrate that the breakout of symmetrical triangles usually occurs in the direction of the trend. Ascending and descending triangles are usually continuation patterns in forex trading. Ascending triangles in an uptrend are statistically more reliable than descending triangles. Ascending triangles consist of a horizontal resistance and a lower support line that is tilted in the direction of the trend. Descending broadening wedge Descending broadening wedges are continuation chart patterns formed by a channel that widens and is against the trend. Forex volumes tend to increase during the formation of such a wedge.
A break through the resistance line provides a good signal to trade into a continuation of the trend with a price target equal to the height that separates the pattern’s high and low. Ascending broadening wedge Ascending broadening wedges are reversal chart patterns that are formed by a bullish widening channel. Here, forex trading volumes increase during the formation of the wedge. A break through the support line provides a good sell signal, with a first price target that is equal to the chart pattern’s low.