Elearnmarkets - Financial Market Learning
  • Courses
  • Webinars
  • Stories
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
Get Free Course
  • Basic Finance
  • Derivatives
    • Futures
    • Options
  • Financial Planning
  • Fundamental Analysis
  • Technical Analysis
  • Mutual Funds
  • Marketshala
  • Miscellaneous
Elearnmarkets - Learn Stock Market, trading, investing for Free
  • Courses
  • Webinars
  • Stories
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
Get Free Course
Elearnmarkets - Learn Stock Market, trading, investing for Free
No Result
View All Result
Home Technical Analysis

Broadening Triangle Pattern: A Symbol of High Volatility

Elearnmarkets by Elearnmarkets
June 6, 2024
in Technical Analysis, Charts, Patterns & Indicators
Reading Time: 3 mins read
1
21.5k
VIEWS
Share on FacebookShare on XShare on WhatsApp

A Broadening Triangle is a relatively rare triangle pattern which occurs when there is a lot of volatility in a security.

It is formed when the prices forge higher highs and lower lows consecutively.

Table of Contents
What is Broadening Triangle?
Nifty Intraday 15 mins Chart
TataElxsi Chart
Bottomline

On joining the highs and lows with lines, a diverging pattern is seen on the chart.  This pattern stands for high volatility and several false breakouts.

Triangle pattern

What is Broadening Triangle?

While forming, it is difficult to predict the actual breakout from the pattern because of the diverging nature.

More over the tendency and requirement of surpassing the previous highs in the formation of the pattern, is a reason why breakout traders face a lot of stoploss triggers , trapping bulls when the previous peak is breached and bears when the previous low is breached and then the price turns back and returns into the pattern.

The direction in which the final breakout will occur is also very difficult to predict in the Broadening Triangle pattern.

In the charts below, let us take some real -life examples of the broadening triangle.

Example 1 – Nifty Intraday 15 mins Chart

A broadening triangle had occurred on the chart on the 3rd and 4th of Feb, which gave a downside breakout and lead to a severe correction in the price.

The appearance of a gap on the breakout adds to the important and surety of the breakout.

Nifty intraday chart showing the Broadening Triangle
Nifty intraday chart showing the Broadening Triangle

Example – TataElxsi Chart

The next example is on the chart of TataElxsi where the pattern has occurred very close to the top of the chart and has not given a decisive breakout yet.

tataelxsi broadening yriangle
TATAELXSI showing a Broadening Triangle pattern near its top.

Bottomline:

The volumes play an important role in the development of this pattern.

As the pattern unfolds, the volume keeps falling, until finally, the breakout comes wherein the volume shoot up.

We have already discussed that this pattern is a rather confusing one and is a nightmare for the traders who trade breakouts.

It is strong advice that pattern traders either don’t practice this pattern or work on it with the assistance of other technical indicators to make their analysis doubly sure.

Rather than using the laggard indicators like moving average, it is better to use leading indicators like momentum oscillators like the Relative Strength Index(RSI)

Keep Learning!!

Use our Stockedge to get access to various fundamental and technical scans of the financial markets.

Tags: advanceenglish
ShareTweetSend
Get Kotak Offer Get Kotak Offer Get Kotak Offer
Previous Post

Loan EMI Calculation – Smart Ways to calculate EMI easily

Next Post

Personal Finance Rules – 6 Simple Tips for Managing your Finances

Elearnmarkets

Elearnmarkets

Elearnmarkets (ELM) is a complete financial market portal where the market experts have taken the onus to spread financial education. ELM constantly experiments with new education methodologies and technologies to make financial education effective, affordable and accessible to all. You can connect with us on Twitter @elearnmarkets.

Related Posts

Understand Slippage in Trading
Technical Analysis

What is Slippage in Trading? Meaning & Examples

March 28, 2025
385
Breakout trading strategies
Technical Analysis

Top 5 Breakout Trading Strategies

March 12, 2025
1.3k
5 stocks for today
Technical Analysis

5 Stocks to Buy Today That Could Beat the NIFTY in 2025!

May 5, 2025
465
Image describing What is marginal trading facility
Technical Analysis

 What is a Margin Trading Facility? Advantages & Risks

April 4, 2025
870

Comments 1

  1. frolep rotrem says:
    5 years ago

    Definitely, what a splendid website and revealing posts, I surely will bookmark your website.Best Regards!

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer

Elearnmarkets (Kredent InfoEdge Pvt. Ltd.) is a SEBI-registered Research Analyst (RA) entity (SEBI Registration No.: INH300007493). The information provided in this article is for educational and informational purposes only and should not be considered as an offer to buy or sell any securities or investment products.

The stocks, securities, and investment instruments mentioned herein are not recommendations under SEBI (Research Analysts) Regulations, 2014. Readers are advised to conduct their own due diligence and seek independent financial advice before making any investment decisions.

Investments in securities markets are subject to market risks. Please read all related documents carefully before investing. Investing in Equity Shares,
Derivatives, Mutual Funds, or other instruments carry inherent risks, including potential loss of capital. Elearnmarkets (Kredent InfoEdge Pvt. Ltd.) does not provide any guarantee or assurance of returns on any investments. Past performance is not indicative of future performance.

Elearnmarkets Logo

Follow Us

Facebook-f X-twitter Instagram Linkedin-in Youtube Telegram

Register on Elearnmarkets

Continue your financial learning by creating your own account on Elearnmarkets.com

Register Free Account

Download App

Playstore logo
Download on app store

Categories

  • Basic Finance
  • Derivatives
  • Financial Planning
  • Fundamental Analysis
  • Technical Analysis
  • Mutual Funds
  • Miscellaneous

Popular On Elearnmarkets

  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati

© 2025 Elearnmarkets. All Rights Reserved

  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling
  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling

Download Our App

No Result
View All Result
  • Article Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • ETFs & Mutual Funds
    • Marketshala
    • Miscellaneous
  • Language
    • Hindi
    • Bengali
    • English
  • Courses
  • Webinars
  • Stories
Get Free Course

© 2024 Elearnmarkets All Rights Reserved

A Handbook of Technical Analysis
To start your trading journey as a seasoned technical analyst
Download Guide For FREE
Guidebook On Chart Patterns
Take Your Trading To The Next Level With Strategies Shared In This Ebook
Download Guide For FREE
Trading Mentorship Program