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What is Bearish Broadening Pattern

Broadening Pattern is a form of reversal pattern. (Reversal pattern happens when Trend Line or Neckline breaks, the longer time it takes it good for the reversal pattern)

Bearish Broadening is a Bearish  reversal pattern. The pattern is made by two horizontal lines. At least (2 or 3 times) for strong confirmation. This pattern can be further divided into two parts ( Bullish or Bearish). Lets discuss them in detail :-

Broadening Top | Right angled Ascending Broadening Wedge Reversal Pattern | Ascending Broadening Wedge

chart Pattern
Broadening Top

 

chart pattern
Right angled Ascending Broadening Wedge Reversal Pattern
chart pattern
Ascending Broadening Wedge

 

Key Features of this Pattern :-

Trend # Overall Trend should be Positive (or Upward),

Entry # One should enter into the Trade after the breaking of Lower (or Support) Line,

Stop Loss # Swing High should be your stop Loss,

Profit Target # Difference of upper Line (Resistance) and Lower Line (support) should be your Target ( Risk Reward Ratio should be 1:2 or more)

Volume # Breakdown should happen with a strong volume

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