CustomTradingPlatform .com
Log in Get started free
Home / Technical Analysis / Chart patterns / Broadening Formation

Chart pattern · Reversal · Neutral

Broadening Formation

What is it, in one line

Diverging trendlines, with price making both higher highs and lower lows, widening rather than compressing.

Neutral · Reversal · verdict: Traditional claim, not yet measured here

Neutral Reversal Traditional claim
Schematic · the live site draws this from the rule

Formation rule

Diverging trendlines, with price making both higher highs and lower lows, widening rather than compressing.

Method

Target and invalidation

Conventional target: No standard projection; the pattern signals rising volatility more than a specific target.

Invalidated by: A move that stops widening and reverses back inside the range ends the pattern.

Traditional claim, not measured

This is the standard technical-analysis interpretation. It has not been tested against our dataset the way the candlestick formations have.

All 18 chart patterns →

Other reversal chart patterns

All 18 →
Head and Shoulders Three peaks, the middle one highest, both shoulders roughly level, joined by a rising or flat neckline.
Inverse Head and Shoulders The mirror of Head and Shoulders: three troughs, the middle lowest, both shoulders roughly level.
Double Top Two peaks at roughly the same level, separated by a moderate trough.
Double Bottom Two troughs at roughly the same level, separated by a moderate peak.

Size a trade on this setup before you take it.