As of 09/26/2022
  Indus: 29,261 -329.60 -1.1%  
  Trans: 11,999 -129.90 -1.1%  
  Utils: 953 -25.04 -2.6%  
  Nasdaq: 10,803 -65.01 -0.6%  
  S&P 500: 3,655 -38.19 -1.0%  
YTD
-19.5%  
-27.2%  
-2.8%  
-30.9%  
-23.3%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow1,000 or 950 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22
As of 09/26/2022
  Indus: 29,261 -329.60 -1.1%  
  Trans: 11,999 -129.90 -1.1%  
  Utils: 953 -25.04 -2.6%  
  Nasdaq: 10,803 -65.01 -0.6%  
  S&P 500: 3,655 -38.19 -1.0%  
YTD
-19.5%  
-27.2%  
-2.8%  
-30.9%  
-23.3%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow1,000 or 950 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22

Bulkowski's Broadening Tops Quiz

Initial release: 4/8/2019.

Broadening Top: Quiz

Below is a six-slide quiz to test your ability to identify broadening tops and trade them. Captions appear below the pictures in red for guidance, so be sure to scroll down far enough to read them.

 

1 / 5
chart pattern
A broadening top (outlined in red), begins with price rising into the chart pattern. The 'launch price' is at B. That's where a strong uptrend begins. Notice that the stock returns to the launch price at C and coasts a bit lower than B (often C will remain above B). Volume trends downward in this example, as shown at D, but trends upward 67% of the time. Price crosses the pattern plenty of times, touching the two trendlines at least 5 times (at least three touches of one side and two on the other). The breakout can be in any direction. At A, a partial decline correctly predicts an upward breakout 74% of the time. Indeed, price breaks out upward in this case before busting the breakout and heading to C.
2 / 5
chart pattern
Find as many broadening tops as you can. For help, click here.
3 / 5
chart pattern
Broadening top C shows a partial decline which correctly predicts an upward breakout. Broadening top D also shows a partial decline, but this one fails when price breaks out downward. Pattern A is not a broadening top. It's a broadening bottom. I ignore any overshoot or undershoot (B) when determining a top or bottom. If you ignore the minor low at B, the trend is downward into the pattern, making it a broadening bottom and not a top.
4 / 5
chart pattern
This is another broadening top. This one has a partial rise (A), which correctly predicts a downward breakout. How far will price drop? Where will it pause on the way down?
5 / 5
chart pattern
Price bar A is where price breaks out downward from the broadening top. Notice that price touches the green support line and zips up to B before heading lower. I drew additional green lines from the valley to the left. Point C might look like the low, but it's not. Rather, price touches down slightly above the launch price of D at 48 in mid May (not shown).

See Also

 
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