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Broadening-bottom

📢 The Broadening FormationA technical chart pattern recognized by analysts, known as a broadening formation or Megaphone Pattern, is characterized by expanding price fluctuation. It is represented by two lines, one ascending and one descending, that diverge from each other. This pattern typically appears after a significant increase or decrease in security prices and is denoted by a sequence of higher and lower turning points. Normally this pattern is visible when the market is at its top or bottom. The greater the time frame is better the pattern will work. 🔹How to identify Generally, the Broadening Formation consists of 5 different swings. But the swing has to have a minimum of two higher highs and two lower lows. A trend line is drawn by connecting point 1 and point 3 while points 2 and 4 are also joined together to draw a line. These two lines create a shape that looks like a megaphone or inverted symmetric triangle. These swings’ highs and lows have to close above or below its pivot line and therefore they will create swing high as pivot high (R1, R2, and R3) and swing lows as pivot lows (S1, S2, and S3). A breakout occurs when the line does not respect its support or resistance line and closes outside the shape after making the 5th swing. 🔹Volume Volume plays an important role when it comes to the recognition of this pattern. In the Broadening Top, volume usually peaks along with prices. An increase in the volume, on the day of the pattern confirmation, is a strong indicator. 🔹Failures This pattern also can be traded when it fails but is necessary to identify the failure perfectly. A failure can be spotted when it fails to break the trend line (upper or lower as the case may be) after completing the 5th swing. Suppose in a bull market condition, this pattern is formed and if it fails to break the upper trend line, traders go short when the price goes below 3rd swing high (R2). Similar is the scenario, when the market is in a bear phase and it fails to break the lower trend line (S2), traders take a long position when the price closes above the 3rd swing high. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
⚠️⚠️ ✔️ OR ❌️ ? Is it the bottom for #bitcoin? ⚠️⚠️Building on my previous $BTC logarithmic regression chart, there has now been an almost perfect bounce off of the yellow, dotted, inversion-curve line. This coincides with daily, weekly and monthly RSI's being at extremely oversold levels with the 4hr RSI moving down into oversold territory. Personally, all my limit orders were hit perfectly so it seems I may have at least bought "A" bottom here. This abrupt price drop also has now created a broadening edge pattern, which typically will break to the upside when formed at the bottom of a downtrend. All of these confluences may just spell the final bottom price for $BTC in the short term and validate my "inversion-curve" theory. Of course this can still be invalidated by a close below the inversion-curve line. If that occurs, I would still believe an inversion could be possible, but over a much longer time period. In that scenario, my target range for a price bottom would be between $10,770 & $12,694. #btcinversion #btcbottom *These are my personal opinions, based on chat data. This is not financial advice.*
BITSTAMP:BTCUSDLong
by DoozerInvest
2
RCEL, Broadening Bottom (bearish) I found this pattern at tickeron website with the following data: STATUS = Confirmed CURRENT CONFIDENCE = 82% TARGET (EXIT) PRICE = 12.07 USD BREAKOUT (ENTRY) PRICE = 20.50 USD DISTANCE TO TARGET PRICE = 41.23% EMERGED ON = Oct 30, 12:00 PM (EDT) CONFIRMED ON = Oct 30, 03:39 PM (EDT) WITH CONFIDENCE LEVEL = 95% The Broadening Bottom pattern forms when a security price makes higher highs (2, 4) and lower lows (1, 3, 5) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Bottom from a Broadening Top is that the price of the security is declining prior to entering the pattern formation. This type of formation happens when volatility is high or increasing, and when a security's price is moving with high volatility but or no direction. It potentially indicates growing investor nervousness and a little indecisiveness. Trade idea If the price breaks out from the bottom pattern boundary, day traders and swing traders should trade with a DOWN trend. Consider selling the security short or buying a put option at the downward breakout price level. To identify an exit, compute the Target Price by subtracting the pattern height from the breakout point. Pattern height is a difference between patterns highest high and its lowest low. To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to buy back a short position or sell a put option at or above the breakout price.
NASDAQ:RCELShort
by AlTorress
ZTS Broadening Bottom (bullish)I found this pattern at tickeron website with the following data: STATUS = Confirmed CURRENT CONFIDENCE = 66% TARGET (EXIT) PRICE = 166.29 USD BREAKOUT (ENTRY) PRICE = 162.17 USD DISTANCE TO TARGET PRICE = 2.83% EMERGED ON = Sep 24, 12:00 PM (EDT) CONFIRMED ON = Sep 28, 09:30 AM (EDT) WITH CONFIDENCE LEVEL = 74% A broadening bottom can be characterized as a bullish reversal pattern. It consists of two divergent lines that form a triangle. The movements between the two triangle sides increase as the pattern continues. Each side must be touched at least twice to be validated. The Broadening Bottom pattern is formed when the price of a security progressively makes higher highs (2, 4) and lower lows (1, 3, 5) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Bottom from a Broadening Top is that the price of the security is declining prior to entering the pattern formation. Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price by adding the pattern height (H on the chart) to the breakout price. The pattern height is the difference between the pattern’s highest high and its lowest low. To limit potential loss when the price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price. This type of formation happens when volatility is high or increasing, and when the price of a security is moving with high volatility but with little or no direction. It can potentially indicate growing investor nervousness and indecisiveness.
NYSE:ZTSLong
by AlTorress
LMNX Textbook Broadening Bottom PatternThis should be an interesting trade. Expect overcorrection because this stock is volatile. Maybe test with a small amount at a higher point (2) and put a joke stop-loss order somewhere around $20, fully hoping MMs take it out. Do not put a limit order down there or prices will never go down to that point. Instead, drop a market buy or complex option spread right when they try to bust the stop. Then place an imaginary stop order or alert below the prior low. The yellow boxes are where most retail options are set to expire worthlessly. Superstition maybe. Paranoia, perhaps? The market works against us traders. Ever hear of the 90/90/90 rule? 90% of traders lose 90% of their account in 90 days. The system is set up to help us fail. And we support it by trusting patterns like these. Not trading advice. Rampant speculation advice, it is.
L
by Hellork
BTC - Broadening Bottom halts more downside?Last month I saw a bearish gartley harmonic developing that probably ended closer to a bearish bat harmonic. The long was successful and so far the short has been too (link below) I had seen no potential for failure in this short until 2 days ago when we started to develop a broadening wedge. This analysis is neutral not long until a 4 hour close confirms this pattern and I'd want to see more upside before considering a long but I am considering it. Good luck!
COINBASE:BTCUSD
by PhilHumphreys
2
LTC has bottomed out. Next target 75$LTCUSD pair has been trading in a descending triangle betwen 22.12.2017 and 10.6.2018. A break down from that triangle has happened at 12 Jun 2018. Since then, the bottom line (reddish color) is the new important resistance level. LTC has the first break up attempt (you can see on the chart) which was NOT successful because of the lack of volume which also means that lack of interest of investors. But here comes the second one. I think that will be successfull because whales cannt hide their foot prints , volume. Volume made a HigherHigh at 27 Sep '18 and I predict that price will follow it. LTC's first target is 75$ levels and stay above it Second one is 110$ levels. After then new ATH. Please share your ideas with me and hit the like button :D I appreciate that. Thanks for stoping by and reading my post . Trade safe, stay happy
BITFINEX:LTCUSDLong
by BilimNehri
2
AUDUSD update Symmetrical Broadening BottomUpdate : Look bulish at the moment The classic strategy (1): Entry: Take a long position at the breakout of the resistance starting from the fifth rotation and if the price is on the higher third of its annual range Stop: The stop is placed below the resistance Target: Theoretical target of the pattern Advantage: Strong probability to win Disadvantage: Bearish breakouts have more potential than bullish breakouts The classic strategy (2): Entry: Take a short position at the breakout of the support starting from the fifth rotation and if the price is on the lowest third of its annual range Stop: The stop is placed above the support Target: Theoretical target of the pattern Advantage: Strong probability to win Disadvantage: - The aggressive strategy : Entry: Take a long position at the contact with the support and a short position at the contact with the resistance Stop: The stop is placed below/above the last lowest/highest Target: Opposite band of the triangle Advantage: It could have many rotations Disadvantage: At its beginning, the pattern is hard to see
by F