Broadening Follow Through – Bearish

Developed at Definedge.

The bearish broadening follow-through is an 8-column pattern offering the opportunity to participate in the expected emerging downtrend.

 1 – Bearish broadening pattern

2 – Double bottom sell pattern

Bearish broadening pattern shows difficulty. It is expected to be followed by a significant trend. Double bottom sell pattern followed after a bearish broadening pattern indicates that a strong downtrend is likely and offers an affordable bearish trading opportunity. It is a strong bearish pattern.

Prashant Shah introduced this concept and explained this pattern in his book on Point & Figure charts.

This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.