Broadening Structures

Question 1

Name The Structure

Answer 1

Broadening Bottom

• Buyers finding more reason to buy higher and higher
• sellers more motivated to take profits and escape trades
• bouts of opptimism/pessimism

Question 2

Name The Structure

Answer 2

Right-Angled and Descending

Question 3

Name the Structure

Answer 3

Broadening Top

Question 4

Name the structure

Answer 4

Broadening Ascending Wedge

Question 5

Name The Structure

Answer 5

Broadening Descending Wedge

Question 6

What are the traditional price targets and trading strategy for a Broadening Bottom

Answer 6

• Trade the breakout
• Trade the 4th into 5th swing

Breakout.

• let the candle close outside the structure.
• let a second candle close above the high of the breakout candle
• stoploss under the previous swing high/low

Last Swing

there are 5 swings in a broadening pattern

open long or short on the 4th swing and stoploss under the support/resistance

Failure on Last Swing

Question 7

What Notable Patern can you see in this image

Answer 7

Broadening Bottom

• Trend into the pattern is Down
• Uncertainty enters the market
• The top of the broadening bottom is broken

Result

• Change in direction
• The Move up could have been measured as the height of H1
• often the heighest high H2 is too large to use as a target
• often resistance levels are respected more than H1/H2

Question 8

What Notable Patern can you see in this image

Answer 8

Broadening Top

• Trend into the pattern is up
• Uncertainty enters the market
• the bottom of the broadening Top is broken

Result

1. Change in direction
2. Dead Cat Bounce respects the Broadening Top as resistance