Hi guys, I've had some time off from day job which gave me the opportunity to trade again.

Ive been doing a lot or readings lately specifically on price action strategies and chart patterns and its fun to see things pop up on your charts as you learn them.

For today, I'd like to share a chart pattern that looks close to a flag pennant from the start but gradually expands in to what is known as the descending broadening wedge.

A descending broadening wedge is
a bullish pattern formed by two diverging downward slants.

To validate a descending broadening wedge, there has to be an oscillation between the two lines. Each line has to touch at least twice for this validation.

The pattern will mark the shortness of sellers characterized by a progressive reduction of the amplitude of the waves.

It appears like a bearish channel on which the slope of the resistance is becoming straight as far as the movement moves forward. In this pattern, the trend is bearish but sellers are attempting to retain control.

The target price is given by the lowest point that results in the formation of the wedge.

Source

The graphical representation of a descending broadening wedge is as shown below.

Chart Update Synereo

Here is an actual chart of $AMP that seems mimic this pattern.

Synereo Amp Chart

Charts shows a good low entry point as of this posting for agressive traders who are willing to risk pull backs but you may wait for bullish confirmation at 0.000072.

Synereo has taken huge dumps since last year due to some internal issues on the development of RCHAIN but theres a reason to believe it may have reached its bottom.

Synereo recently updated its roadmap and is close to releasing its Alpha net.

Check out their updated website
http://www.synereo.com/

Tai Zen@HeyTaiZen just tweeted:
@Synereo has internal issues but it's still a good buy at this point with stops below the low at red arrow. higher risk = higher reward.

https://t.co/oLfUIp4dQw
https://twitter.com/HeyTaiZen/status/822471098721857536

Note: This is the author's personal analysis base from his trade experience and he will not be responsible for any profit/loss you may gain from this analysis.