I have drawn this pattern on today’s S&P 500. The following text is from a book I have followed over the years and was written in 1969 called “Plan your way to Wall Street Profits”
This pattern is rare and does not occur often. That is why I am a bit excited!
“An orthodox broadening formation is an inverted symmetrical triangle that, peculiarly, contains three progressively higher tops that alternate between two progressively lower bottoms. Five reversals in trend are always necessary. The pattern is completed when prices descend from the third peak below the second bottom and penetrate the lower boundary of the formation. Although full confirmation is only obtained after the downward breakout, the bearishness of the pattern is so potent that it is usually advisable to prepare to liquidate when prices have started falling from the final peak. (see fig 6)”
This pattern is rare and does not occur often. That is why I am a bit excited!
“An orthodox broadening formation is an inverted symmetrical triangle that, peculiarly, contains three progressively higher tops that alternate between two progressively lower bottoms. Five reversals in trend are always necessary. The pattern is completed when prices descend from the third peak below the second bottom and penetrate the lower boundary of the formation. Although full confirmation is only obtained after the downward breakout, the bearishness of the pattern is so potent that it is usually advisable to prepare to liquidate when prices have started falling from the final peak. (see fig 6)”