21. Broadening Bottom Pattern The broadening bottom pattern is a bullish reversal pattern that signals potential strength in the downtrend. The broadening bottom pattern forms when the price makes successively lower lows and higher highs, resulting in diverging trend lines drawn connecting the lows and highs. See the image below.Risky traders would plot the pattern and take trades at the double bottom spotted on the lower trendline support. The range of the depth is usually taken as a target range whenever the price breaks out of the pattern and initiates a trade setup.

Point D is taken as a horizontal price range for price to face resistance. Once it got broken and a new higher high got created, the momentum has potentially been converted from bearish to bullish; this same resistance has the potential to act as a new support structure. Observe how price retested to the support, formed a candlestick pattern and suggested a long trade setup.