Megaphone chart pattern

The most important thing when it comes to technical analysis is to have a clear understanding of the market conditions. You can place a stop loss just below the recent lows to minimize your risk. The stock is likely to make a big move upwards. Once you see that the stock price breaks up through the top of the pattern, it is a good time to buy.

This is a great opportunity to get in on the action and reap the rewards of a market reversal. It indicates that the stock is gaining momentum and is likely to continue to move higher. While this pattern looks bearish at first, it's actually a bullish sign. Sometimes this pattern is called a megaphone bottom or a reverse symmetrical triangle. The pattern is said to get its name because the chart looks like a broadening formation. A breakout above the resistance level signals a potential trend change. The occurence of this pattern indicates that selling pressure is weakening, and buyers are starting to step in.

This creates a "broadening" effect on the chart. This pattern is created when the highs become progressively higher, and the lows become progressively lower. A broadening bottom can be characterized as a bullish reversal pattern.