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Broadening Formation
Patterns in Price
This price pattern is a result of high volatility.
The Broadening Pattern is identified by trendlines that connect a series of widening pivot highs and pivot lows. It looks like a megaphone and in fact, it is also known by that name. The pattern is a result of a series of higher pivot highs and lower pivot lows.
This pattern occurs in times of extreme volatility, a lot of movement with less direction. Technicians identify 'swing' type trades in this pattern, rather than a trend trade. Consistent profits come from correctly seeing what price is doing and having the right strategy. Trend Master Series
What we know from this pattern is that price will swing back and forth so a profit can be made with that information.
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Contact Candy Schaap TraderDoc5050@yahoo.com You can purchase the book from www.stockmarketstore.com or Amazon.com. Sign up for the Journal, weekly lessons and the Great Xpectations.
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