Broadening Bottom
BullishReversalIntermediateAfter a drop, the swings widen both ways. A close above the top swing flips it up.
Verdict: UseBitcoin 4H: 5 trades, won 80%, avg trade +7.5% vs random day +1.1% (too few trades to judge). Backtest
Price has been falling. It finds a low, and bounces.
step 1/7
Trade rules
| Direction | Long (buy) |
|---|---|
| Entry | After a decline, three falling swing lows and two rising swing highs; a candle CLOSES above the highest high. |
| Cancelled if | Price trades below the lowest low before that close. |
| Target | Full height, projected from the breakout |
3 common mistakes
- Buying the third low before the pattern breaks out.
- Calling any choppy range a megaphone: you need lower lows AND higher highs.
- Ignoring position size: the stop is a whole pattern away.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 · too few trades to judge | 5 | 80% | +7.51% | +1.13% |
| US large caps (50) · 1D · 2016-2026 | 32 | 66% | +3.90% | +3.25% |
Verdict: UseMade money and beat a random entry on US large caps. Bitcoin had too few signals to judge.
pattern +125%random +104%