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"Fear is a heartless thief."
ChartWatchCentral - Broadening Tops A Broadening Top is very powerful chart reversal pattern which often fools investors and untrained chartists, especially those who subscribe to the philosophy of buying on breakouts or when a new high is reached. A textbook version of this formation consists of five price points......three peaks and two troughs which resemble a lopsided 'W', because each new peak is higher than the last and each new trough undercuts the prior one. Simply put, it is an expanding price range with higher highs and lower lows. An upward sloping trendline can often be drawn connecting the higher peaks, while a descending trendline can be used to connect the lower lows. And believe it or not, that upper trendline can often be used to perfectly anticipate where the final peak could occur, as you will see when looking though our database of chart patterns below. Some examples of these Broadening Top formations
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