Broadening Bottom Chart Pattern — How to Spot and Trade It

Expanding swings after a decline — instability that often resolves upward.

In plain words

A shaking engine that finally catches and drives off.

What the classic books say

The Broadening Bottom is a reversal pattern with reference reliability Low and illustrative behaviour of ~55-60% resolve upward (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). Volatile; confirmation matters more than usual.

Level by level

Beginner

Big emotional swings after a fall — buyers usually win the final round.

Intermediate

Expanding volatility at a low often marks capitulation and accumulation together.

Advanced

Watch for a partial decline that fails to reach the lower boundary — a classic upside tell.

Trade plan (educational template)

• Entry: On a close above the upper expanding trendline.
• Stop-loss: Below the latest lower low.
• Target: Pattern height projected up from the breakout.
• Check the numbers with the Risk-Reward calculator before any entry.

Common beginner mistakes

• Assuming every touch will reverse

Practise it now

• ▶ Draw the Broadening Bottom with live trendlines and a ghost forecast
• 📖 Full lesson in the Learning Hub

_Educational content only — not financial advice. Historical behaviour never guarantees future results._