AlTorress

ZTS Broadening Bottom (bullish)

Long
NYSE:ZTS   Zoetis Inc
I found this pattern at tickeron website with the following data:
STATUS = Confirmed
CURRENT CONFIDENCE = 66%
TARGET (EXIT) PRICE = 166.29 USD
BREAKOUT (ENTRY) PRICE = 162.17 USD
DISTANCE TO TARGET PRICE = 2.83%
EMERGED ON = Sep 24, 12:00 PM ( EDT )
CONFIRMED ON = Sep 28, 09:30 AM ( EDT )
WITH CONFIDENCE LEVEL = 74%

A broadening bottom can be characterized as a bullish reversal pattern. It consists of two divergent lines that form a triangle. The movements between the two triangle sides increase as the pattern continues. Each side must be touched at least twice to be validated.

The Broadening Bottom pattern is formed when the price of a security progressively makes higher highs (2, 4) and lower lows (1, 3, 5) following two widening trend lines . The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Bottom from a Broadening Top is that the price of the security is declining prior to entering the pattern formation.

Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price by adding the pattern height (H on the chart) to the breakout price. The pattern height is the difference between the pattern’s highest high and its lowest low.

To limit potential loss when the price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.

This type of formation happens when volatility is high or increasing, and when the price of a security is moving with high volatility but with little or no direction. It can potentially indicate growing investor nervousness and indecisiveness.