Broadening formation as a graphical model FX takes place only in the event that the trend lines are at least 5 points. Moreover, the number of 3 can be both highs and lows. Visually, the figure is very similar to the wedge pattern, but its lines are located at the same angle relative to the X-axis coordinate system.
Broadening formation in an uptrend slightly lifted up, and every subsequent maximum inside the previous increases. Minima within the expanding model for the dominant uptrend also increasing. In the case of pattern formation in the downward trend lows and highs in the figure has steadily declined.
Beware of false breaks of trendlines - at this chart pattern Forex they happen more often!
Despite some differences from the expanding triangle "formation" has with it some properties. For example, both graphical models is considered to be indicative of a trend reversal. In this case, the continuation of the dominant trend after expanding shapes happen nearly as often. That is why both the pattern is considered to be faithful companions uncertain situation on the stock exchange.
Question asked not only new traders, but seasoned market participants with extensive experience are still open. As advantageous to trade using inflationary models? How to determine the best time to enter the market? Wait for the breakdown of the trend lines, or to place an order within a pattern?
Unfortunately a clear answer to this question has not given one guru John currency market. Quite a number of experienced members generally prefer to sidestep the data chart patterns, waiting solve uncertainties or final breakdown of the formed shape.
Some traders prefer "not to mess" with small expanding patterns, and enter the market only after the expanding formation of large size, using the basic rules of graphic analysis. This approach allows you to successfully trade not only outside the model, but also within it.
However, in any situation, the price movement can be very sudden and impulsive, reliably and accurately predict the future behavior of the graph is very difficult, so it is especially in this situation, remember - hard money management - the key to the minimum (luchshih!) loss on foreign currency exchange.