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Broadening Bottom

The Broadening Bottom has two diverging trendlines at the bottom of a downtrend. Signals bullish reversal.

ExpandingBroadening Bottom: 2 lines diverge → Break uncertain

Pattern Details

Category

reversal

Success Rate

68%

Average Move

+18%

Duration

2-4 weeks

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Upper trendline: Slopes upward
  • 2
    Lower trendline: Slopes downward
  • 3
    Two lines expand at the bottom

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter long position when price breaks above upper trendline
  • ✓
    Look for divergence with RSI/MACD
  • ✓
    Target = Maximum height of the pattern
  • ✓
    Stop loss placed below lowest trough
Trading Tips
  • More effective than Broadening Top
  • Volume should increase on breakout
  • Confirm with momentum indicators

Statistics

Breakout Statistics
Bullish Breakout68%
Bearish Breakout32%
Performance Metrics
Average Rise+18%
Average Decline-6%
Pullback Rate15%