As of 03/24/2023
Indus: 32,238 +132.28 +0.4%
Trans: 13,707 +18.91 +0.1%
Utils: 911 +28.13 +3.2%
Nasdaq: 11,824 +36.56 +0.3%
S&P 500: 3,971 +22.27 +0.6%
|
YTD
-2.7%
+2.3%
-5.9%
+13.0%
+3.4%
|
|
As of 03/24/2023
Indus: 32,238 +132.28 +0.4%
Trans: 13,707 +18.91 +0.1%
Utils: 911 +28.13 +3.2%
Nasdaq: 11,824 +36.56 +0.3%
S&P 500: 3,971 +22.27 +0.6%
|
YTD
-2.7%
+2.3%
-5.9%
+13.0%
+3.4%
| |
| ||
For more information on this pattern, read
Encyclopedia of Chart Patterns,
pictured on the right, pages 28 to 44.
Updated with new statistics on 8/25/2020.
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The right-angled and ascending broadening chart pattern is a mid-list performer in bull markets. Downward breakouts perform slightly worse than upward breakouts, based on the performance rank.
![]() Right-Angled and Ascending Broadening Formation
|
The above numbers are based on 551 samples for upward breakouts and 455 for downward breakouts. See the glossary for definitions.
Characteristic | Discussion |
Price trend | Can be up (74% have a rising price trend) leading to the pattern. |
Shape | A megaphone tilted up with the bottom horizontal. |
Trendlines | The bottom trendline is horizontal, the top one slopes upward. |
Touches | At least five touches total, three peaks or three valleys should touch the associated trend line with two or more touches of the other trendline. Ideally, the second of three touches will touch (instead of coming 'close' to) the trendline. |
Volume | Trends upward 62% to 63% of the time. |
Breakout | Upward 55% of the time. |
Trading Tactic | Explanation | ![]() The Measure Rule
|
Measure rule | Compute the height from the highest peak (point A in the Measure Rule figure to the right) to the horizontal trendline (B) and multiply it by the above 'percentage meeting price target.' Add the result to the highest peak (A, upward breakouts) or subtract it from the horizontal trendline (B, downward breakouts) to get the price target (C). | |
Intraformation trade | Buy at the horizontal trendline when price starts rising and sell or sell short once price turns at the top trendline. | |
Buy at 3rd touch | When price touches the horizontal trendline for the third time and begins rising, buy. | |
Partial rise | A partial rise works 61% of the time. | |
Partial decline | A partial decline works 80% of the time. | |
Price trend | The best performing patterns are those with a short-term (less than three months) rise leading to the pattern. | |
Yearly high, low | Downward and upward breakouts perform best when the breakout is within a third of the yearly low. | |
Volume trend | A downward volume trend results in the best postbreakout performance. | |
Throwbacks and pullbacks | Throwbacks and pullbacks hurt postbreakout performance. | |
Height, width | Tall patterns perform better than short ones. Wide patterns (both breakout directions) perform well. |
Breakout Direction | 1990s | 2000s | 2010s |
Up (average) | 41% | 50% | 36% |
Down (average) | 16% | 13% | 14% |
The above table shows the performance of right-angled ascending broadening top chart patterns in bull markets over the last three decades.
Upward breakouts did best in the 2000s but worst in the 2010s.
Downward breakouts outperformed in the 1990s but didn't vary much among the decades.
The above figure shows an example of a right-angled and ascending broadening formation. A strong advance begins at point D and that leads to the right-angled and ascending broadening formation. Price bounces between two diverging trendlines before it closes outside the bottom trendline at A. This marks the downward breakout. Price recovers and busts the pattern at C when price moves above the top of the chart pattern. A throwback completes at B and price climbs thereafter.
-- Thomas Bulkowski
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