Broadening Bottom
Definition
Expanding swings after a decline — instability that often resolves upward.
Psychology
Big emotional swings after a fall — buyers usually win the final round.
Real-life analogy
💡 A shaking engine that finally catches and drives off.
Expected direction
up
Entry / Stop / Target
Entry: On a close above the upper expanding trendline. · Stop: Below the latest lower low. · Target: Pattern height projected up from the breakout.
Historical behaviour
Volatile; confirmation matters more than usual.
Illustrative success rate
~55-60% resolve upward · Low reliability
Common beginner mistakes
- • Assuming every touch will reverse
Quick quiz — did you understand?
1. Is the Broadening Bottom generally considered bullish, bearish, or neutral?
2. After a confirmed Broadening Bottom, the expected direction is usually:
3. Which is a common beginner mistake with the Broadening Bottom?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.