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Broadening Wedge Descending

The Broadening Wedge Descending has a horizontal upper boundary and downward-sloping lower boundary.

2 falling linesBroadening Wedge Descending: Falling, expanding → Usually declines

Pattern Details

Category

bilateral

Success Rate

62%

Average Move

0%

Duration

2-6 weeks

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Upper boundary: Horizontal
  • 2
    Lower boundary: Slopes downward
  • 3
    Expands in downward direction

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Wait for clear breakout
  • ✓
    Usually breaks downward
  • ✓
    Target = Height of the pattern
  • ✓
    Stop loss on opposite side of breakout
Trading Tips
  • Similar to descending triangle but expanding
  • Upward breakout can also occur
  • Confirm with volume

Statistics

Breakout Statistics
Bullish Breakout38%
Bearish Breakout62%
Performance Metrics
Average Rise+7%
Average Decline-12%
Pullback Rate17%