Broadening Top
Higher highs and lower lows inside two diverging lines, after a rise; breaks either way.
A broadening formation is a widening range, a sign of an unstable market. Edwards & Magee describe the top version as a bearish pattern; Bulkowski finds breaks in both directions.
Diverging lines are the hardest to draw consistently; only clean multi-touch patterns are listed.
How we define it
- Sloping lines: drawn through swing highs or lows with distinct touches (at least 3 candles apart) within about 0.4 ATR; no swing pokes through a line and no close is outside it before the break
- At least 6 touches in total, at least 3 on one line and 2 on the other; the upper line rises and the lower line falls; the range widens by at least 60%
- Price rallied into the pattern (prior trend up)
- Breakout above the upper line or breakdown below the lower one
- Minimum length: 2 months on 1D, 3 months on 1W, 10 days on 4H
- Breakout (up) / breakdown (down): the first candle close beyond the boundary by at least 3% on 1D and 1W (1.5% on 4H)
- Failed breaks: a breakout or breakdown that closes back inside the boundary within 6 candles on 4H, 5 on 1D or 3 on 1W is removed from the list
- Trend filter: breakouts only above the 200-period EMA (40-week EMA on 1W), breakdowns only below it
- Watchlist: the pattern is complete but unbroken and price is within 3% (or 1 ATR, at most 6%) of the boundary
No recent breakout or breakdown
No broadening top has completed recently. See all patterns.
Nothing on the watchlist
No mature broadening top is close to its breakout or breakdown level right now.