Chart Analysis and Chart Pattern Recognition – Broadening Formations
Broadening Formations, including Broadening Ascending Wedge, present inverted triangle patterns. They start with narrow
fluctuations, and then widen out between diverging boundary lines. The pattern, where
one of the boundary lines is horizontal, is referred to as a right-angled formation.
Broadening formations usually mark the reversal when confirmed by other technical
Broadening formations Screening page presents a list of stocks forming Broadening formation Pattern.
# 1 As a reversal formation, Broadening formation Pattern appears in a mature trend,
characterized by overbought/oversold long-term and short-term indicators. This
situation usually generates divergence on long-term indicators.
# 2 For the best results, chart patterns and trend resistance support should be considered together with other technical analysis signals and technical trading techniques.
Stock Chart Patterns.
The price chart is the result of the activity of all market
participants. It reflects periods of high expectations,
greed and fear. As with most emotional human activities, it
presents different patterns. Chart analysis and pattern recognition provide
useful information for technical analysis, trend analysis, and market
timing signals for technical trading.
Trendlines and chart patterns can be analyzed in different time
frames: from intraday, daily and weekly frames, up to
multi-year patterns. It is the best practice to
analyze patterns in conjunction with other technical
Each price pattern is formed by several smaller sub
waves. At least 3 – 4 subwaves are required to perform
a reliable pattern screening. We use a minimal required number of sub
waves for an earlier pattern recognition screener. On the other
hand, a pattern formed with more subwaves is more