Trends/Continuation patterns

Right-angled broadening

One boundary stays flat while the other spreads away, so the swings get larger in one direction only.

Continuation patternsBest on 6M, 1Y, 3YAlso called flat-top broadening formation

Illustration of the right-angled broadening shape. It is a sketch, not real price data.

What it shows

A right-angled broadening formation has a flat line on one side (here the highs) and a line on the other side that moves away from it (here the lows get lower). The range widens in one direction.

It shows growing volatility with one price level being tested again and again.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Find at least 3 swing highs within 1.5% of each other.
Find at least 3 swing lows that fall.
Fit a flat line through the highs and a falling line through the lows.
Require the gap to widen to at least 130% of its start.

Starting values: Flat side tolerance 1.5%; Divergence gap at the end at least 130% of the start; Minimum length 20 bars. These are proposed and will be tuned on real price data before launch.

How to read it

Red is the flat top and teal is the falling bottom.
Each dip goes lower than the one before.
The widening gap shows rising volatility.

Status labels you may see

Label	What it means
Widening	Price is between the lines.
Broken up	Closed above the flat top.
Broken down	Closed below the falling line.

What cancels it

A close beyond either line ends the shape.

What traders check next

Volume through the shape.
Whether the flat side holds on later tests.
Which side price leaves.

Limits

Rare.
Swings are large, so risks are large.
Lines are easy to fit to noise.

Try it in forecastviz

Open any ticker and choose Continuation patterns → Right-angled broadening in the left menu.
Switch between 6M, 1Y, 3Y to see how the picture changes.
Compare with Broadening top and Ascending triangle on the same chart.

Open on a ticker

Questions

How is it different from a broadening top?

A broadening top has both boundaries moving apart. This has one flat boundary.

Is there an upside-down version?

Yes, with a flat bottom and rising highs.