A broadening formation is a type of consolidation pattern that can be used to predict the likelihood of a reversal in the direction of a current trend. When found in an uptrend, it indicates a near-term reversal of the price action rather than a continuation of the trend.

The broadening formation occurs when price fluctuation produces a series of higher highs and lower lows that steadily widen over time and are generally thought to be found only in topping formations where they are thought to be the result of unrealistic bullish investor expectations.