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Broadening

SNAP Broadening Formation BreakoutHere we see a right angle broadening formation, with the accumulation line on the bottom. What appears to be an island reversal pattern appeared in the daily chart, marked by the yellow rectangle, which is typical of congestion patterns like this. Broadening formations are typical of late stage bull markets and are accompanied by irregular volume throughout. A majority of broadening formations carry bearish implications, and a breakout occured today in SNAP, although not by the generally "safe" 3% margin. I would expect a throwback, but the pattern implies a -65% move to the downside to 17.5, although not necessarily soon.
NYSE:SNAPShort
by BarnardR
2
Broadening TopWhat Is a Broadening Formation? A broadening formation is a price chart pattern identified by technical analysts. It is characterized by increasing price volatility and diagrammed as two diverging trend lines, one rising and one falling. It usually occurs after a significant rise, or fall, in the action of security prices. It is identified on a chart by a series of higher pivot highs and lower pivot lows. Understanding Broadening Formations Broadening formations occur when a market is experiencing heightened disagreement among investors over the appropriate price of a security over a short period of time. Buyers become increasingly willing to buy at higher prices, while sellers find ever more motivation to take profits. This creates a series of higher interim peaks in price and lower interim lows. When connecting these highs and lows, the trend lines form a widening pattern that looks like a megaphone or reverse symmetrical triangle. The price may reflect the random disagreement between investors, or it may reflect a more fundamental factor. For example, many countries experience broadening formations due to heightened political risk ahead of an upcoming election. Different polling results or candidate policies may cause a market to become very bullish at some points and very bearish at other points. Broadening Tops: Important Bull Market Results Overall performance rank for up/down breakouts (1 is best): 22 out of 39/28 out of 36 Break even failure rate for up/down breakouts: 18%/27% Average rise/decline for up/down breakouts: 42%/13% Throwback/pullback rate: 67%/67% Percentage meeting price target for up/down breakouts: 66%/42% The above numbers are based on 1,215 samples for upward breakouts and 804 for downward breakouts.
Long
by Crypt0_Ninja
1
Reason why I am bearish on 10Y T-Note#ZN1! #10YearTNote #Weekly #CBOT - I took a deep look into the 10-year Treasury Note, futures commodity. The chart above is weekly. - In Elliott Wave Theory perspective, an assumption has been made that the bullish wave starting from the swing low at 117’13’5 to the swing high at 140’20’0 as am impulsive 5-3-5-3-5 zig zag wave structure. - With that said, I am weighing more on the possibility that the bullish wave from 130’25’0 to 135’15’0 is an 5-3-5 ABC corrective phase and this scenario becomes a bit more solid if bottom of the blue channel fails supporting. - While expecting another corrective wave, a major confluent zone to keep an eye on is the red circle on the chart. This is where an inner downward trendline, a neckline (green trendline), and 0.382 retracement level overlaps. - However, entering long here seems quite risky considering the RR ratio. Also, if the potential neckline (green trendline) breaks below, I am way more bearish expecting widening/broadening pattern. - Those aggressive traders willing to take the risk here (buying at red circle), make sure to set a tight stoploss. I would rather be patient and wait until the price action gets confirmed and enter short if the trendline fails supporting. - Here are some of the decent areas to enter long position if the H&S case is likely after observing failure of support at the neckline: 128’5~129’5 and 124’9~125’9.
CBOT:ZN1!Short
by Tommy_Trader
SPY Crash - Prediction and explanation.This is my analysis of the market, specifically the S&P 500. Indicators and fundamentals that point to a massive drop. The formation identified is called a Broadening Formation (aka Megaphone Formation) Here's the link to better explain the formation in detail - www.investopedia.com As stated in the video, if you have a difference of a opinion, I would love to hear it and learn how you got there. I'm always willing to learn something new.
AMEX:SPYShort
0
by ReadyFor401k
13
Broadening Formations, Right-Angled and Ascendingthepatternsite.com Broadening Formations, Right-Angled and Ascending: Trading Tips Measure rule: Compute the height from the highest peak (point A in the Measure Rule figure to the right) to the horizontal trendline (B) and multiply it by the above 'percentage meeting price target.' Add the result to the highest peak (A, upward breakouts) or subtract it from the horizontal trendline (B, downward breakouts) to get the price target (C). Intraformation trade: Buy at the horizontal trendline when price starts rising and sell or sell short once price turns at the top trendline. Buy at 3rd touch: When price touches the horizontal trendline for the third time and begins rising, buy. Partial rise: A partial rise works 61% of the time. Partial decline: A partial decline works 80% of the time. Price trend: The best performing patterns are those with a short-term (less than three months) rise leading to the pattern. Yearly high, low: Downward and upward breakouts perform best when the breakout is within a third of the yearly low. Volume trend: A downward volume trend results in the best postbreakout performance. Throwbacks and pullbacks: Throwbacks and pullbacks hurt postbreakout performance. Height, width: Tall patterns perform better than short ones. Wide patterns (both breakout directions) perform well.
KRAKEN:BTCUSDLong
by mfilippi
$DJI Broadening Top Pattern appearance Hello everyone, First of all excuse my english, plus, this is my first ever Tradingview idea I decided to publish. Yay! These days everyone talking about bear market is about to hit us, so I was like let me check $DJI and see if I can figure something :D I consider myself a beginner with technical charts & I really like classical pattern trading so I wanted to share this with you (feel free if you want to correct me or give me some information to add to my brain :D) This is a Weekly DJI chart that shows a Broadening Tops Pattern. this pattern appears like a (Megaphone with higher highs and lower lows that widen over time) and it considered a short-term bullish continuation. I am not sure what to expect here as we're very close to the resistance, however, I guess we would see a short-term decline to 25-28k levels (above 200-EMA) and then volatility might increase to see a breakout. However, someone would say, we can also see a breakout and a continuation of bull market. This is also possible. No one knows. All I can say that 2020 market is super special and I am glad trading it & I cannot wait to see what will happen. What do you think? & Happy Trading! Thanks,
TVC:DJI
by Elliotation
Pattern Cheatsheet: Identfying a Broadening Top PatternThe Broadening Top pattern appears when price makes a straight upwards run (similar to the "Flagpole" of a Bull Flag Pattern, then swings between two expanding broadening trendlines with at least 5 touches. It is a neutral pattern which means it can break out in either direction, on the bottom right examples i have explained how the pattern is identified, measured and traded for both Bullish & Bearish breakouts. The idea is to get a entry early by identifying the pattern, (point A) which allows for a better Risk:Reward ratio and closer stop loss. The second potential entry is at point B, which is considered a Bullish or Bearish retest ( Support/Resistance flip it is also known as), but this area is a bit risker and has less "room to move". The pattern can give a a sign that the price may have a higher chance in heading in a certain direction, and we can measure the height of the straight run upwards, aswell as the height of the two LARGEST SWINGS within the pattern to get two possible price targets ; one conservative and one less so. The Broadening Top appears frequently on Bitcoin & Ethereum and has one of the better success rates out of all the different Broadening Patterns and is one of the easiest to trade & identify because often it works similar to a Bull Flag pattern. If you found this idea informative, Dont forget to show your support by liking & commenting thank you traders!
Education
by Worth_The_Ri5k
INOV, Broadening Top (bearish)I found this pattern at tickeron website with the following data: STATUS = Confirmed CURRENT CONFIDENCE = 71% TARGET (EXIT) PRICE = 18.49 USD BREAKOUT (ENTRY) PRICE = 19.51 USD DISTANCE TO TARGET PRICE = 4.45% EMERGED ON = Nov 09, 07:00 AM (EST) CONFIRMED ON = Nov 10, 10:11 AM (EST) WITH CONFIDENCE LEVEL = 78% The Broadening Top pattern forms when a security price makes higher highs (1, 3, 5) and lower lows (2, 4) 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 Top from a Broadening Bottom is that the price of the security is rising 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 little or no direction. It indicates growing investor nervousness and 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 breakout point. The pattern height is difference between the pattern’s 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.
IShort
by AlTorress
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