Broadening Pattern Explained

It is a reversal pattern that most often appears at the end of an uptrend. This pattern resembles a symmetrical triangle but in an inverted form, meaning that the sides of the triangle diverge instead of converging

Pattern Shape:

Pattern Formation Stages:

This pattern indicates a loss of control in the market and a state of indecision between sellers and buyers, causing the price to form higher highs and lower lows until one side gains control and the price breaks out of the triangle

Utilizing the Pattern:

Due to trader indecision, it is preferable to wait until the market stabilizes in a clear direction and then enter at the breakout point

Pattern Target:

Measure the widest expansion in the pattern from the highest peak formed, then project the same distance from the breakout point

Conclusion:
It is a reversal pattern that reflects increasing market volatility and indecision, where price expands in a widening formation before breaking out in a new direction