broadening top

Definition

A neutral chart pattern in a strong bullish trend. The price appears to stabilize and form a bullish flag formation. Instead of trading in a well defined parallel range as expected, the price begins to form new highs and new lows to form a reverse triangle or megaphone shaped pattern. Two consecutive highs create a positive trend line. Two consecutive lows create an alternative negative trend line at the lower range. When either trend line is broken, that is the one which dominates. Chances for a breakout are 50-50 in either direction.
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broad-based weighted average ratchet broader market