The Pattern in the Chart Above is commonly known as a Descending Broadening Formation'
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The Pattern in the Chart Above is commonly known as a Descending Broadening Formation
Here we have a textbook example of what is known as a Bullish Breakout. The descending broadening wedge is considered to be a reversal pattern, and is bullish in nature. Though the pattern is typically a signal of reversal, continuation or metric of human psychology, it can be incredibly important in determination of the strength in the absoluteness of a trend.
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