Broadening Triangle Pattern

Broadening Triangle Ascending:

Horizontal bottom with higher highs following an up-sloping trend line. Breakout is upward. It is Short-term bearish reversal.

Facts: Tall patterns perform better than short ones. Patterns both tall and wide outperform. Heavy breakout volume helps performance

Expected movement: 18% decrease is expected in the long term. Short term expect the stock to move the same length of its pattern.

Success rate: 65% of the time.

Failure Rate: 15% of the time.

Time Spam: 23 to 40 days.

Stop-loss: 3% above the level.

Broadening Triangle Descending:

Horizontal top with lower lows following a down-sloping trend line. Breakout is upward.

Facts: Throwbacks and breakout day gaps hurt performance. Tall patterns perform better than short ones. A rising volume trend and U-shaped volume suggests better post breakout performance.

Expected movement: 23% decrease is expected in the long term. . Short term expect the stock to move the same length of its pattern.

Success rate: 60% of the time.

Failure Rate: 15% of the time.

Stop-loss: 2% below the trend line after breakout level.