Broadening Formation in EUR/USD TF 1HR
A Broadening Formation is one of my favorite reversal patterns.
It usually appears at the near end of a major bull market.
Is is actually an inverted triangle, or a triangle turned backwards.
If a flag and pennants usually are bullish pattern, a Broadening Formation is
actually the opposite. It is a strong Bearish signal.
Best way to trade:
Sell when the price breaks the 2nd bottom.
And the target is 2/3 from the beginning of the rally.
Or at the fibonacci 61.8.
Or you could also use WolfeWave as to determined the target profit.
Draw a trendline fro 1 to 4 and the target point is somewhere
at the end of the 1-4 trendline.
Updates on 21/02/08
Wuuhuu.. Sorry for the late updates, but the price went down to Fibo 61.8, then bounce to Fibo 50.0, and after that went all the way to a new low of 1.4439.. Sweet 