Chart Patterns - Broadening Bottoms
- Identification Guideline
Price should trend down leading to the start of the broadening bottom. Ignore any overshoot or undershoot that occurs in the week or so before the start of any chart pattern.
Price takes on megaphone appearance, sandwiched between two diverging trend-lines. The top trend-line slopes up and the bottom one slopes down.
Price must touch the trend lines at least five times: three touches on one trend-line and on the other.
Trends higher from the start of the chart pattern to the end.
A close outside either of the trend-line represents a breakout.