Descending Broadening Wedge - #AAPL

Apr 26, 2022

Descending Broadening Wedge ( Reversal pattern )

AAPL

Price makes a low and rises. We then track price as it rises away from the low. We are looking for lower highs and lower lows in a tight range.

The lower highs make a falling trendline, this forms the upper boundary to our pattern. The lower lows make a lower falling trendline, this forms the lower boundary to our pattern.

With the Descending Broadening Wedge formation we are looking for two touches to each trendline.

Both the upper and lower trendlines should fall. The lower trend line should fall more steeply than the upper trendline thus forming the broadening wedge.

Tall and wide patterns work better than short and narrow patterns.


Descending Broadening Wedges tend to breakout upwards.

Swing traders can trade the pattern from top to bottom and from bottom to top.

After the trendlines are formed, as soon as price touches the upper trendline go short. Cover this short (exit the trade) when price reaches the lower trendline.

As price touches the lower trendline go long (buy). Place your stop below the lower trendline. Trade price upwards to the upper trendline. Exit this trade here.

When price breaks the upper trendline and closes above it this signals a breakout. Go long (buy) here.

The target is the first (highest) high in the pattern.

Apr 28, 2022

Trade closed manually

AAPL bounced $10 from lower wedge line. That's almost +3% move .. I think that's enough for the trade...

I expected a bumpy road a head , kind of price action. rollercoaster..