What it is
The Right-Angled Descending Broadening pattern has a flat top resistance line and a downward-sloping support line, creating an inverted megaphone that expands downward. Despite the descending bottoms, this pattern is typically bullish — it breaks up more often than down.
The flat resistance shows a consistent ceiling, while the declining lows show increasingly wild downside swings. This is the mirror of the ascending version and is equally counter-intuitive.
The eventual breakout above the flat resistance catches shorts and bears off guard, as the expanding downside swings had convinced them the trend was bearish.
The psychology
The flat resistance creates a false ceiling. Bears see price failing at the same level and assume it will always hold.
The declining lows look bearish and attract short sellers. Each new low seems to confirm the downtrend. But the flat resistance means buyers keep coming back at the same level — there's persistent demand above.
When resistance finally breaks, shorts covering and breakout buyers create a powerful rally. The deeper the descending lows went, the more shorts are trapped, and the bigger the squeeze.
Identification
- 01Flat horizontal resistance — Price rejected at the same level 2+ times
- 02Declining support — Lower lows on each swing
- 03Expanding range — Pattern widens over time
- 04At least two touches on each boundary — Defines both lines
- 01Three or more touches on flat resistance — Well-defined ceiling
- 02Volume increases on dips — Capitulation building
- 03Occurs after a downtrend — Accumulation pattern
- 04Breakout on high volume — Confirms the reversal
- 01Resistance is sloping — That's a regular broadening formation
- 02Range is contracting — That's a triangle
- 03Only one touch on each line — Not enough structure
- 04Tight orderly swings — Not a broadening
Execution framework
Buy on breakout above the flat resistance line with volume confirmation. Alternatively, buy at the declining support with a tight stop below.
Below the most recent low (if buying the breakout) or below the support line.
The height of the pattern at its widest point, projected upward from the breakout.
Typically 1:2 or better given the wide pattern range.
Context matters
Don't let the declining lows fool you — this pattern breaks up more often than down. The expanding downside volatility is shaking out weak hands, not confirming a bear trend.
- 01Well-defined flat resistance (3+ touches)
- 02Pattern after a downtrend
- 03Volume declining on rallies to resistance
- 04Breakout on increased volume
- 01Resistance not truly flat
- 02Strong bear market environment
- 03Short pattern duration
- 04No prior downtrend
When panic lows keep getting deeper but resistance holds flat, that's accumulation disguised as distribution. Buy the breakout above the flat ceiling.
Compare the full pattern set
Use the library to compare similar structures before deciding what the chart is actually building.