![]() When a descending broadening wedge gets observed, the initial point is going to be a narrow end, but the ending point is a thick end that displays the price wave expansion. Typically, increasing volume shows a bullish position, but it’s short-lived, and following declines are susceptible to reduced previous support levels, causing a collapse.īack to Top Identifying the Descending Broadening Wedge Patternĭescending broadening wedge occurs as a wedge pattern, which is a formation with a thick and thin end. It is frequently considered to be present in topping formations, but it’s difficult to be a product of the unrealistic expectations of bullish investors.īroadening is not the same as other consolidation patterns, possesses large wide ranges, and is susceptible to significantly larger levels of volatility over time. ![]() The broadening formation occurs if the price oscillates because of a progression of larger highs and smaller lows that moderately increases over time. If identified in an uptrend, it indicates a reversal of the market action and not a trend continuation.
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