![]() Volume tends to rise over time in most cases.Volume normally rises as prices move up and declines as prices move down.Each trend-line should have a minimum of three touches, or close to that.The upper trend-line will have a higher slope than the lower one, giving the appearance of a broadening formation.Both upper and lower trend-lines will slope higher.There are quite a number of characteristics that will be unique to ascending broadening wedge formations A partial rise does not predict a change in trend. On many occasions, these formations will appear towards the end of a rising price trend and signal a reversal. Price movement is contained and alternates between the two non-parallel trend-lines. When prices break through the lower trend-line they will tend to drop quickly. The two sloping trend lines are the most obvious thing you will notice the upper one will have a slightly steeper slope than the lower one and the trend lines will then spread out over time while both slope upward. Once the decline begins prices will most often decline to, or below, the start of the formation. ![]() Thomas Bulkowski’s Encyclopedia Of Chart Patterns notes the failure rate for this pattern formation is 24%, however only 6% where a downside break occurs, suggests that once the downside break happens there is a possibility that a price recovery and a continued decline should be expected. ![]() The patterns are very trustworthy once a downside break happens, however they are less reliable prior to the break of the lower trend-line. The ascending broadening wedge formations volume is likely to increase ever so slightly as the breakout advances. The upper trend line of an ascending broadening wedge goes upward at a higher rate than the lower one, thus creating an apparent broadening appearance. While symmetrical broadening formations have a price pattern that revolves about a horizontal price axis, the ascending broadening wedge differs from a rising wedge as the axis rises. The formation, ascending broadening wedge is called this because of its similarity to a rising wedge formation and then has a broadening price pattern.
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