Broadening Formation
A Broadening Formation is a price-chart pattern in technical analysis characterized by higher highs and lower lows, with two diverging trendlines that widen over time. It signals rising volatility and indecision, and breakouts can occur in either direction.
Example: On a daily chart, prices form higher highs and lower lows over several weeks, creating a Broadening Formation; a breakout occurs when price closes beyond the upper trendline on increased volume.
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