Broadening Formation Right Angles and Ascending Wedge   

Broadening Formation Right Angles and Ascending Wedge

Broadening Formation Right Angles and Ascending Wedge Resembles a megaphone with the base of the formation horizontal and bounded on the top by an up-sloping trendline.  The base is a horizontal, or nearly so, trendline that connects two minor lows. Must have at least two distinct minor lows before driving a trendline. An up-sloping trendline bounds the expanding price series on the top. Must have at least two minor highs to create a trendline.
 Example
 
graphic
 
Statistics
Percent of successful formations – 43%
Average time to pullback/throwback completion – 2 hours
 
Trading tactics
Compute the formation height from highest high to the horizontal trendline. Subtract the height from the value of the horizontal trendline and the result is the target price. More accurate targets use a formation height divided by 2.