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Broadening Bottom

bullish

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.