As of 02/21/2024
  Indus: 38,612 +48.44 +0.1%  
  Trans: 15,582 +118.68 +0.8%  
  Utils: 854 +11.76 +1.4%  
  Nasdaq: 15,581 -49.91 -0.3%  
  S&P 500: 4,982 +6.29 +0.1%  
YTD
 +2.4%  
-2.0%  
-3.1%  
 +3.8%  
 +4.4%  
  Targets    Overview: 02/13/2024  
  Down arrow37,700 or 39,000 by 03/15/2024
  Up arrow16,400 or 15,400 by 03/01/2024
  Up arrow870 or 800 by 03/01/2024
  Down arrow15,000 or 16,400 by 03/15/2024
  Down arrow4,850 or 5,100 by 03/15/2024
As of 02/21/2024
  Indus: 38,612 +48.44 +0.1%  
  Trans: 15,582 +118.68 +0.8%  
  Utils: 854 +11.76 +1.4%  
  Nasdaq: 15,581 -49.91 -0.3%  
  S&P 500: 4,982 +6.29 +0.1%  
YTD
 +2.4%  
-2.0%  
-3.1%  
 +3.8%  
 +4.4%  
  Targets    Overview: 02/13/2024  
  Down arrow37,700 or 39,000 by 03/15/2024
  Up arrow16,400 or 15,400 by 03/01/2024
  Up arrow870 or 800 by 03/01/2024
  Down arrow15,000 or 16,400 by 03/15/2024
  Down arrow4,850 or 5,100 by 03/15/2024

Bulkowski's Descending Broadening Wedge Quiz

Released 5/3/2019.

Descending Broadening Wedge: Quiz

Below is a slider quiz to test your ability to identify descending broadening wedges and trade them. Captions appear below the pictures in red for guidance, so be sure to scroll down far enough to read them.

 

1 / 7
chart pattern
Here's a descending broadening wedges, outlined in red. Price crosses the pattern from side to side well until D. Then we get a white space hole (D to A). Point A doesn't count as a trendline touch because it doesn't rest at a minor high (or low). The red trendline just cuts through price. Point A marks an upward breakout. Look for at least 3 touches of one trendline and 2 of the other. At B, a partial rise suggests an immediate downward breakout which fails to happen in this example. Partial rises work just 33% of the time, so it's best to ignore the signal. Volume is U-shaped in this example, but usually trends upward from start to end.
2 / 7
chart pattern
3 / 7
chart pattern
The two red lines highlight the wedge at A. This one has a partial decline (A) which correctly signals an upward breakout (works 79% of the time). The flag is at D, and BC are the two bottoms of a double bottom.
4 / 7
chart pattern
Find these patterns: diamond bottom, head-and-shoulders top, double top, and descending broadening wedge.
5 / 7
chart pattern
Point A is the diamond bottom, FGB are the three peaks of a head-and-shoulders top, BC is a double top, D is the wedge. This wedge isn't a good example of one (too much white space at D) so if you didn't find it, that's okay. A partial rise (E) suggests a downward breakout. That happens at F. How far will price fall, if indeed, it drops? Look at the next chart for guidance.
6 / 7
chart pattern
The chart is on the weekly scale so you can see support and resistance levels. Which price, from 55 down to 10, marks the ultimate high or ultimate low? An ultimate high/low is the highest peak or lowest valley after which price drops/rises at least 20%, signaling a trend change. Make your price selection now. The correct answer will be one of the green lines.
7 / 7
chart pattern
This chart shows what happened. The ultimate low is at A, so if you guessed 27, you were correct. Price recovers at least 20% from A. However, the stock continues declining, eventually bottoming out at $6 in January 2016.

See Also

 
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