Prices follow two up-sloping trend lines that broaden out. Breakout happens when the price breaks the trend line in downwards/upwards
Facts: Throwbacks hurt performance. Patterns with heavy breakout volume perform better.
Beware: Beware of the pullback. If 2 continuous lose is higher than previous close, then exit the trade.
Highly volatile after breaking out.
Expected movement: 20% in the downside and 29% in the upside.
Broadening Wedges, Descending
Price follows two down-sloping trend lines that broaden out. Breakout is upward. It is Short-term bullish reversal.
Facts: Throwbacks hurt performance but breakout day gaps help. Tall patterns perform better than short ones. Patterns with a falling volume trend perform better.
Expected movement: 15% in the downside and 20% in the upside.