The easiest types of broadening formations to detect are those with a "flattened" bottom or top. Since the whole concept of widening price swings suggests highly emotional activity, volume patterns are difficult to characterize, although at market tops, volume is usually heavy during the rally phases.

The patterns at both bottoms and tops are similar to the Head and Shoulders (H&S) variety, except that the head in the broadening formation is always the last to be formed. A bear signal comes with a decisive downside breakout. Volume can be heavy or light, but additional bearish emphasis arises if activity expands at this point.

Since a broadening formation with a flattened top is an accumulation pattern, volume expansion on the breakout is an important requirement. Broadening formations occasionally fail to work. Unfortunately, there does not appear to be a reliable point beyond which it is safe to say that the pattern has failed to operate. The best defense in such cases is to extend the diverging trend lines, and await a decisive penetration by the price as confirmation.

When completed, right-angled broadening formations of both the reversal and the continuation type usually result in a particularly dynamic move. It is almost as if they are aborted Head and Shoulders (H&S) formations in which the move is so powerful that there is not time to complete the right shoulder.