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Symmetrical Continuation Triangle (Bearish)

This is the 36th Day course in a series of 60-Days called “Technical Analysis Training

You will get daily one series of this Training after 8 o’clock night (Dinner Finished)

Follow MoneyMunch.com Technical Analysis Directory and Learn Basic Education of Technical Analysis on the Indian Stock Market (NSE/BSE)

Technical-Analysis-Training

Symmetrical Continuation Triangle (Bearish)

Implication

A Symmetrical Continuation Triangle (Bearish) is considered a bearish signal, indicating that the current downtrend may continue.

Description

A Symmetrical Continuation Triangle (Bearish) shows two converging trendlines, the lower one is ascending, the upper one is descending. The formation occurs because prices are reaching both lower highs and higher lows. The pattern will display two highs touching the upper (descending) trendline and two lows touching the lower (ascending) trendline.

This pattern is confirmed when the price breaks out of the triangle formation to close below the lower (ascending) trendline.

Volume is an important factor to consider. Typically, volume follows a reliable pattern: volume should diminish as the price swings back and forth between an increasingly narrow range of highs and lows. However, when the breakout occurs, there should be a noticeable increase in volume. If this volume picture is not clear, investors should be cautious about decisions based on this triangle.

symmetrical_triangle_bearish

Important Characteristics

Following are important characteristics for this pattern.

Occurrence of a Breakout

Technical analysts pay close attention to how long the Triangle takes to develop to its apex. The general rule is that prices should break out – clearly penetrate the lower trendline – somewhere between three-quarters and two-thirds of the horizontal width of the formation. The break out, in other words, should occur well before the pattern reaches the apex of the Triangle. The closer the breakout occurs to the apex the less reliable the formation.

Duration of the Triangle

The Triangle is a relatively short-term pattern. While long-term triangles do form, the most reliable triangles take between one and three months to form.

Volume

Investors should see volume decreasing as the pattern progresses toward the apex of the Triangle. At breakout, however, there should be a noticeable increase in volume.

Trading Considerations

Duration of the Pattern

Consider the duration of the pattern and its relationship to your trading time horizons. The duration of the pattern is considered to be an indicator of the duration of the influence of this pattern. The longer the pattern the longer it will take for the price to reach its target. The shorter the pattern the sooner the price move. If you are considering a short-term trading opportunity, look for a pattern with a short duration. If you are considering a longer-term trading opportunity, look for a pattern with a longer duration.

Target Price

The target price provides an important indication about the potential price move that this pattern indicates. Consider whether the target price for this pattern is sufficient to provide adequate returns after your costs (such as commissions) have been taken into account. A good rule of thumb is that the target price must indicate a potential return of greater than 5% before a pattern should be considered useful. However you must consider the current price and the volume of shares you intend to trade. Also, check that the target price has not already been achieved.

Inbound Trend

The inbound trend is an important characteristic of the pattern. A shallow inbound trend may indicate a period of consolidation before the price move indicated by the pattern begins. Look for an inbound trend that is longer than the duration of the pattern. A good rule of thumb is that the inbound trend should be at least two times the duration of the pattern.

Confirm the Breakout

To avoid taking an inadvisable position in a stock, some investors advise waiting a few days to determine whether the breakout signals that the price is ready to move. A key sign of a possible false move is low volume. If there’s no pick up in volume around the breakout, investors should be wary. Typically, a good breakout from a Triangle formation will be accompanied by a definite surge in volume.

Criteria that Supports

Support and Resistance

Look for a region of support or resistance around the target price. A region of price consolidation or a strong Support and Resistance Line at or around the target price is a strong indicator that the price will move to that point.

Moving Average

Watch for the 200 day moving average to flatten. When prices cross below the 200 day moving average (usually about two-thirds to three-quarters of the way through the pattern), the pattern is considered more reliable.

Volume

A strong volume spike on the day of the pattern confirmation is a strong indicator in support of the potential for this pattern. The volume spike should be significantly above the average of the volume for the duration of the pattern. In addition, the volume during the duration of the pattern should be declining on average.

Criteria that Refutes

No Volume Spike on Breakout

The lack of a volume spike on the day of the pattern confirmation is an indication that this pattern may not be reliable. In addition, if the volume has remained constant, or was increasing, over the duration of the pattern, then this pattern should be considered less reliable.

Short Inbound Trend

An inbound trend that is significantly shorter than the pattern duration is an indication that this pattern should be considered less reliable.

Underlying Behavior

This pattern is a result of converging trendlines of support and resistance which give this Triangle pattern its distinctive shape. This occurs because the trading action gets tighter and tighter until the market breaks out with great force. Buyers and sellers find themselves in a period where they are not sure where the market is headed. Their uncertainty is marked by their actions of buying and selling sooner, making the range of the price movements increasingly tight. As the range between the peaks and troughs marking the progression of price narrows, the trendlines meet at the “apex,” located at the right of the chart.

The narrowing of the trading action and the decreasing volume of trade reflect the indecision in the market. Finally consensus or decision in the market is reached and this is reflected as the price breaks out of the triangle. A spike in volume on this breakout date reflects stronger consensus that the stock should move in that direction.

Technical Analysis Training (60 Days – Comprehensive Course)

Short-Term Chart Patterns (15 -Days)

Short-Term Chart Patterns: (7Days)

Gap Down Chart Pattern

Gap Up Chart Pattern

Gravestone Short-term Chart Pattern

Hammer Candle Stick Chart Pattern

Hanging Man Short-term Stock Chart Pattern

Inverted Hammer Stock Chart Pattern

Shooting Star Candle Stick Pattern

Bearish Short-Term Chart Patterns: (2Days)

Engulfing Line (Outside Bearish Reversal) Chart Pattern

Island Top Chart Pattern

Bullish Short-Term Chart Patterns: (6Days)

Engulfing Line (Bullish) Chart Pattern

Exhaustion Bar Chart Pattern (Bullish)

Inside Bar Chart Pattern

Island Bottom Chart Pattern

Key Reversal Bar (Bullish) Chart Pattern

Two Bar Reversal (Bullish) Chart Pattern

Indicators & Oscillators (Total – 11Days)

Bullish or Bearish Indicators: (3Days)

• Double Moving Average Crossover
• Price Crosses Moving Average
• Triple Moving Average Crossover

 

Bullish or Bearish Oscillators: (9Days)

 

• Bollinger Bands Oscillator
• Commodity Channel Index (CCI)
• Fast Stochastic Oscillator
• Know Sure Thing (KST) Oscillator
• Momentum Oscillator
• Moving Average Convergence/Divergence (MACD) Oscillator
• Relative Strength Index (RSI)
• Slow Stochastic Oscillator
• Williams %R Oscillator

Classic Chart Patterns (Total -29Days)

Bearish Classic Chart Patterns: (14Days)

 

• Continuation Diamond (Bearish) Chart Pattern
• Continuation Wedge (Bearish)
• Descending Continuation Triangle Chart Pattern
• Diamond Top Chart Pattern
• Double Top Chart Pattern
• Downside Break Chart Pattern – Rectangle
• Flag Bearish Chart Pattern
• Head and Shoulders Top Chart Pattern
• Megaphone Top Chart Pattern
• Pennant Bearish Chart Pattern
• Rounded Top Chart Pattern
• Symmetrical Continuation Triangle (Bearish)
• Top Triangle/Wedge Chart Pattern
• Triple Top Chart Pattern

Bullish Classic Chart Patterns: (15Days)

• Ascending Continuation Triangle Chart Pattern
• Bottom Triangle Or Wedge Chart Pattern
• Continuation Diamond (Bullish) Chart Pattern
• Continuation Wedge Chart Pattern (Bullish)
• Cup with Handle Bullish Chart Pattern
• Diamond Bottom Chart Pattern
• Double Bottom Chart Pattern
• Flag Bullish Chart Pattern
• Head and Shoulders Bottom Chart Pattern
• Megaphone Bottom Chart Pattern
• Pennant Bullish Chart Pattern
• Round Bottom Chart Pattern
• Symmetrical Continuation Triangle Bullish
• Triple Bottom Chart Pattern
• Upside Breakout Chart Pattern – Rectangle

Education and Extras (4Days)

• Motive (Impulse) Waves

• Corrective Waves
• Bullish Trend Reversals
• Bearish Trend Reversals
• Chart Pattern Statistics

This Completes the List of Courses.

 

Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.

Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?

 

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Rounded Top Chart Pattern

This is the 36th Day course in a series of 60-Days called “Technical Analysis Training

You will get daily one series of this Training after 8 o’clock night (Dinner Finished)

Follow MoneyMunch.com Technical Analysis Directory and Learn Basic Education of Technical Analysis on the Indian Stock Market (NSE/BSE)

Technical-Analysis-Training

 

Rounded Top Chart Pattern

 

Implication

A Rounded Top is regarded as a bearish signal, showing a potential reversal of the existing uptrend to a new downtrend.

Description

A Rounded Top is dome-shaped, as well as is occasionally introduced to as an anatropous container or a disk top. The construction is confirmed when the cost divides down under its moving average.

 

rounded-top-chart-patternImportant Characteristics

Following are important characteristic to look for in a Rounded Top.

Shape

Robert D. Edwards and John Magee explain the round top as becoming a “progressive, innovative, and very molded modification in the improvement way, produced by a innovative change in the security between buying and supplying”.

Volume

Amount can modification, then again amount normally looks to be acetabular, and follow the mutual of the cost framework. Subsequently, as the money start to go up, amount appears to lessen. Once the top of the cost structure begins its reduced turn, quantity tends to improve

Duration of the Rounded Top

Rounded Tops usually happen over a duration of about 3 weeks, but can also be noticed over countless years.

Trading Considerations

Duration of the Pattern

The duration of the pattern suggests the importance of the price motion. Clifford Pistolese writes, “a rounding top that is finished in a couple of months will generally be less important than one that takes a much longer time to finish.”

Target Price

After a downside breakout, technical analysts may choose the beginning price at the left side of the concave shape to determine where the price may mind. Nevertheless, you will want to track the stock with attention. Price may end greater than it was at the beginning of the pattern. Moreover, there is the potential for the price to increase after the rounded top finishes. Thomas N. Bulkowski writes that, “most of the time prices increase after a rounding top finishes”.

Criteria that Supports

Volume

Volume should diminish as the pattern forms.
Moving Average

Moving averages assistance to identify whether the rounded top has the potential to descend. For a rounded top, the price should get across under the moving average when it starts to descend. When this crossing over happens, the pattern is “confirmed”.

There is an variety of writing about moving averages if you are considering in knowledge how they work. In easy terms, the moving average can be used to identify a potential pattern achievements or failing. Commonly, a moving average signifies the closing price of a stock over a set number of days, and can be used to expect the basic way of a stock. Depending on the type of stock, investors may determine to use a long, medium or short term moving average. For example, short duration patterns generally use a 50-day moving average, and longer patterns generally use a 200-day moving average.

Trendlines

Price trendlines supply investors with a way to track and confirm a rounded top. To track a potential rounded top, technical analysts bring a line just beneath the lower limitations of the price uptrend. The trendline is directly, irrespective of the variations of the price. When the price drops below the line, there is indicator that the uptrend has ended.

Whenever the downtrend starts, technical analysts draw different line just above the upper limitations of the price pattern, and continue down towards the start price of the pattern development. When the price rises above the line, there is an indication that the new downtrend has finished.

Criteria that Refutes

Upside Breakouts

A promising-looking rounded shape with an breakout above the moving average, instead of below, may not establish or maintain a new downtrend.

Underlying Behavior

A Rounded Top forms as investor belief shifts slowly from bullishness to bearishness. As the belief transforms up toward the top, there is a drop off in trading volume due to the indecisiveness in the market. There is a stage of combination at the top as trading bounces within a certain range, then lastly there is a steady downturn tagging the shift to bearishness. As investors become additional important about the bearishness, there is an increase in trading volume.

Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your Technical Analysis Training.

Technical Analysis Training (60 Days – Comprehensive Course)

Short-Term Chart Patterns (15 -Days)

Short-Term Chart Patterns: (7Days)

Gap Down Chart Pattern

Gap Up Chart Pattern

Gravestone Short-term Chart Pattern

Hammer Candle Stick Chart Pattern

Hanging Man Short-term Stock Chart Pattern

Inverted Hammer Stock Chart Pattern

Shooting Star Candle Stick Pattern

Bearish Short-Term Chart Patterns: (2Days)

Engulfing Line (Outside Bearish Reversal) Chart Pattern

Island Top Chart Pattern

Bullish Short-Term Chart Patterns: (6Days)

Engulfing Line (Bullish) Chart Pattern

Exhaustion Bar Chart Pattern (Bullish)

Inside Bar Chart Pattern

Island Bottom Chart Pattern

Key Reversal Bar (Bullish) Chart Pattern

Two Bar Reversal (Bullish) Chart Pattern

Indicators & Oscillators (Total – 11Days)

Bullish or Bearish Indicators: (3Days)

• Double Moving Average Crossover
• Price Crosses Moving Average
• Triple Moving Average Crossover

 

Bullish or Bearish Oscillators: (9Days)

 

• Bollinger Bands Oscillator
• Commodity Channel Index (CCI)
• Fast Stochastic Oscillator
• Know Sure Thing (KST) Oscillator
• Momentum Oscillator
• Moving Average Convergence/Divergence (MACD) Oscillator
• Relative Strength Index (RSI)
• Slow Stochastic Oscillator
• Williams %R Oscillator

Classic Chart Patterns (Total -29Days)

Bearish Classic Chart Patterns: (14Days)

 

• Continuation Diamond (Bearish) Chart Pattern
• Continuation Wedge (Bearish)
• Descending Continuation Triangle Chart Pattern
• Diamond Top Chart Pattern
• Double Top Chart Pattern
• Downside Break Chart Pattern – Rectangle
• Flag Bearish Chart Pattern
• Head and Shoulders Top Chart Pattern
• Megaphone Top Chart Pattern
• Pennant Bearish Chart Pattern
• Rounded Top Chart Pattern
• Symmetrical Continuation Triangle (Bearish)
• Top Triangle/Wedge Chart Pattern
• Triple Top Chart Pattern

Bullish Classic Chart Patterns: (15Days)

• Ascending Continuation Triangle Chart Pattern
• Bottom Triangle Or Wedge Chart Pattern
• Continuation Diamond (Bullish) Chart Pattern
• Continuation Wedge Chart Pattern (Bullish)
• Cup with Handle Bullish Chart Pattern
• Diamond Bottom Chart Pattern
• Double Bottom Chart Pattern
• Flag Bullish Chart Pattern
• Head and Shoulders Bottom Chart Pattern
• Megaphone Bottom Chart Pattern
• Pennant Bullish Chart Pattern
• Round Bottom Chart Pattern
• Symmetrical Continuation Triangle Bullish
• Triple Bottom Chart Pattern
• Upside Breakout Chart Pattern – Rectangle

Education and Extras (4Days)

• Motive (Impulse) Waves

• Corrective Waves
• Bullish Trend Reversals
• Bearish Trend Reversals
• Chart Pattern Statistics

This Completes the List of Courses.

 

Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.

Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?

 

articles1.jpg

Megaphone Top Chart Pattern

This is the 33th Day course in a series of 60-Days called “Technical Analysis Training

You will get daily one series of this Training after 8 o’clock night (Dinner Finished)

Follow MoneyMunch.com Technical Analysis Directory and Learn Basic Education of Technical Analysis on the Indian Stock Market (NSE/BSE)

 

Technical-Analysis-Training

Megaphone Top Chart Pattern

Implication

A Megaphone Top also known as a Broadening Top is considered a bearish signal, indicating that the current uptrend may reverse to form a new downtrend.

Description

A Megaphone Top is a relatively rare formation and is also known as a Broadening Top. Its shape is opposite to that of a Symmetrical Triangle. The pattern develops after a strong advance in a stock price and can last several weeks or even a few months.

A Megaphone Top is formed because the stock makes a series of higher highs and lower lows. The Megaphone Top usually consists of three ascending peaks and two descending troughs. The signal that the pattern is complete occurs when prices fall below the lower low.

Megaphone-Top

Volume in the Megaphone Top usually peaks along with prices. It is usual to see trading volumes increase or remain high during the formation of this pattern. The eventual breakout and reversal can be difficult to identify at the time of its occurrence because volume does not appear unusual.

Trading Considerations

Target Price

The target price provides an important indication about the potential price move that this pattern indicates. Consider whether the target price for this pattern is sufficient to provide adequate returns after your costs (such as commissions) have been taken into account. A good rule of thumb is that the target price must indicate a potential return of greater than 5% before a pattern should be considered useful, however you must consider the current price and the volume of shares you intend to trade.

Criteria that Supports

Volume

Volume in the Megaphone Top usually peaks along with prices. A strong volume spike on the day of the pattern confirmation is a strong indicator in support of the potential for this pattern.

Underlying Behavior

The creation of the pattern reflects a period of time when bulls and bears are battling to gain control of the stock. The pattern occurs after the bulls have been charging and driving the stock price appreciably higher. During the formation of the Megaphone Top, however, bears are exerting increasing influence on the stock and causing it to set a series of lower lows. The increasing volatility eventually creates a sense of uncertainty, leads to profit-taking, and deters some of the bulls from making any further commitments. The bears eventually triumph.

Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your Technical Analysis Training.

Technical Analysis Training (60 Days – Comprehensive Course)

Short-Term Chart Patterns (15 -Days)

Short-Term Chart Patterns: (7Days)

Gap Down Chart Pattern

Gap Up Chart Pattern

Gravestone Short-term Chart Pattern

Hammer Candle Stick Chart Pattern

Hanging Man Short-term Stock Chart Pattern

Inverted Hammer Stock Chart Pattern

Shooting Star Candle Stick Pattern

Bearish Short-Term Chart Patterns: (2Days)

Engulfing Line (Outside Bearish Reversal) Chart Pattern

Island Top Chart Pattern

Bullish Short-Term Chart Patterns: (6Days)

Engulfing Line (Bullish) Chart Pattern

Exhaustion Bar Chart Pattern (Bullish)

Inside Bar Chart Pattern

Island Bottom Chart Pattern

Key Reversal Bar (Bullish) Chart Pattern

Two Bar Reversal (Bullish) Chart Pattern

Indicators & Oscillators (Total – 11Days)

Bullish or Bearish Indicators: (3Days)

• Double Moving Average Crossover
• Price Crosses Moving Average
• Triple Moving Average Crossover

 

Bullish or Bearish Oscillators: (9Days)

 

• Bollinger Bands Oscillator
• Commodity Channel Index (CCI)
• Fast Stochastic Oscillator
• Know Sure Thing (KST) Oscillator
• Momentum Oscillator
• Moving Average Convergence/Divergence (MACD) Oscillator
• Relative Strength Index (RSI)
• Slow Stochastic Oscillator
• Williams %R Oscillator

Classic Chart Patterns (Total -29Days)

Bearish Classic Chart Patterns: (14Days)

 

• Continuation Diamond (Bearish) Chart Pattern
• Continuation Wedge (Bearish)
• Descending Continuation Triangle Chart Pattern
• Diamond Top Chart Pattern
• Double Top Chart Pattern
• Downside Break Chart Pattern – Rectangle
• Flag Bearish Chart Pattern
• Head and Shoulders Top Chart Pattern
• Megaphone Top Chart Pattern
• Pennant Bearish Chart Pattern
• Rounded Top Chart Pattern
• Symmetrical Continuation Triangle (Bearish)
• Top Triangle/Wedge Chart Pattern
• Triple Top Chart Pattern

Bullish Classic Chart Patterns: (15Days)

• Ascending Continuation Triangle Chart Pattern
• Bottom Triangle Or Wedge Chart Pattern
• Continuation Diamond (Bullish) Chart Pattern
• Continuation Wedge Chart Pattern (Bullish)
• Cup with Handle Bullish Chart Pattern
• Diamond Bottom Chart Pattern
• Double Bottom Chart Pattern
• Flag Bullish Chart Pattern
• Head and Shoulders Bottom Chart Pattern
• Megaphone Bottom Chart Pattern
• Pennant Bullish Chart Pattern
• Round Bottom Chart Pattern
• Symmetrical Continuation Triangle Bullish
• Triple Bottom Chart Pattern
• Upside Breakout Chart Pattern – Rectangle

Education and Extras (4Days)

• Motive (Impulse) Waves

• Corrective Waves
• Bullish Trend Reversals
• Bearish Trend Reversals
• Chart Pattern Statistics

This Completes the List of Courses.

.

Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.

Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?

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Pennant Bearish Chart Pattern

This is the 35th Day course in a series of 60-Days called “Technical Analysis Training

You will get daily one series of this Training after 8 o’clock night (Dinner Finished)

Follow MoneyMunch.com Technical Analysis Directory and Learn Basic Education of Technical Analysis on the Indian Stock Market (NSE/BSE)

Technical-Analysis-Training

Pennant Bearish Chart Pattern

Implication

A Pennant (Bearish) is considered a bearish signal, indicating that the current downtrend may continue.

Description

A Pennant (Bearish) observe a high, or almost vertical decrease in price, and is made up of two converging trendlines that kind a narrow, tapering flag shape. The Pennant shape usually looks as a horizontal shape, instead than one with a downtrend or uptrend.

Aside starting its shape, the Pennant is comparable in all areas to the Flag. The Pennant is also like to the Symmetrical Triangle or Wedge continuation patterns nevertheless; the Pennant is generally smaller in period and flies horizontally.

pennant Berish Chart pattern

Important Characteristics
Following are important characteristics for this pattern.
Trendlines

For Pennants, the rates trendlines tend to gather. At the begin of the Pennant, the price surges, possibly in reaction to an unanticipated and unfavorable company statement. Following the price increase, the price variations maintain till they pianoter out and become decreasingly less fickle. This attitude seems on a price chart with the original price spike developing what technical analysts recommend to as the “mast” of the Pennant, adopted by a triangular pennant shape.

Volume

As the Pennant grows, the volume tends to decline. St. martin Pring records in his book, Technical Analysis Explained, “a pennant is in impact a very small triangle. If something, volume tends to agreement still additional through the development of a pennant then during that of a flag.” Although, as with Flags, when the Pennant finishes you will frequently notice a sharp spike in volume.

Duration of the Pattern

In his book, Technical Analysis of the Financial Markets, John J. Murphy determines that Pennants and Flags are fairly short-term and should be finished within one to three weeks”. He also records that by contrast, the bullish patterns accept longer to build than the associated bearish patterns.

Trading Considerations

Possibility of Price Reversal

In some rare cases, the price will crack towards the initial price movement, and generate a reversal trend. The pattern reversal might be signaled during the Pennant development by an enhance in volume, as compared to the additional common decrease.

Duration of the Pattern

The period of the pattern counts on the level of the price variations (integration). The better the variations, the longer a pattern will accept to create.

Target Price

It is generally kept that the duration of the spar suggests the potential price enhance. Such as the Flag, the Pennant is regarded as to be a stop in a downtrend. Next the Pennant, the price commonly jumps to duplicate the height of the mast, while proceeding in the direction of the inbound trend.

Criteria that Supports

Volume

Volume should minimize significantly as the layout forms.

A powerful volume surge on the day of the pattern verification is a potent signal in support of the potential for this pattern. The volume spike should be considerably above the average of the volume for the period of the pattern. In inclusion, the volume more than the course of the pattern should be declining on average.

Criteria that Refutes

Duration of the Pattern

According to Martin Pring, a pattern that surpasses “4 weeks to build should … be addressed with care”. After 4 weeks, attention in the stock is likely to reduce to point that it is unlikely to maintain in a powerful downtrend.

No Volume Spike on Breakout

The lack of a volume spike on the day of the pattern verification is an indicator that this pattern might not be dependable. In inclusion, if the volume has stayed frequent, or was growing, over the duration of the pattern, subsequently this pattern must be regarded not so dependable and may really reverse.

Underlying Behavior

This pattern is successfully a pause in a downtrend. The price has relocated forward of itself with a steep go up; so market task requires a break prior to proceeding the downtrend. This pause is mirrored in the reducing trading volume. Likewise, a spike in volume marks the resumption of the downtrend

 

Technical Analysis Training (60 Days – Comprehensive Course)

Short-Term Chart Patterns (15 -Days)

Short-Term Chart Patterns: (7Days)

Gap Down Chart Pattern

Gap Up Chart Pattern

Gravestone Short-term Chart Pattern

Hammer Candle Stick Chart Pattern

Hanging Man Short-term Stock Chart Pattern

Inverted Hammer Stock Chart Pattern

Shooting Star Candle Stick Pattern

Bearish Short-Term Chart Patterns: (2Days)

Engulfing Line (Outside Bearish Reversal) Chart Pattern

Island Top Chart Pattern

Bullish Short-Term Chart Patterns: (6Days)

Engulfing Line (Bullish) Chart Pattern

Exhaustion Bar Chart Pattern (Bullish)

Inside Bar Chart Pattern

Island Bottom Chart Pattern

Key Reversal Bar (Bullish) Chart Pattern

Two Bar Reversal (Bullish) Chart Pattern

Indicators & Oscillators (Total – 11Days)

Bullish or Bearish Indicators: (3Days)

• Double Moving Average Crossover
• Price Crosses Moving Average
• Triple Moving Average Crossover

 

Bullish or Bearish Oscillators: (9Days)

 

• Bollinger Bands Oscillator
• Commodity Channel Index (CCI)
• Fast Stochastic Oscillator
• Know Sure Thing (KST) Oscillator
• Momentum Oscillator
• Moving Average Convergence/Divergence (MACD) Oscillator
• Relative Strength Index (RSI)
• Slow Stochastic Oscillator
• Williams %R Oscillator

Classic Chart Patterns (Total -29Days)

Bearish Classic Chart Patterns: (14Days)

 

• Continuation Diamond (Bearish) Chart Pattern
• Continuation Wedge (Bearish)
• Descending Continuation Triangle Chart Pattern
• Diamond Top Chart Pattern
• Double Top Chart Pattern
• Downside Break Chart Pattern – Rectangle
• Flag Bearish Chart Pattern
• Head and Shoulders Top Chart Pattern
• Megaphone Top Chart Pattern
• Pennant Bearish Chart Pattern
• Rounded Top Chart Pattern
• Symmetrical Continuation Triangle (Bearish)
• Top Triangle/Wedge Chart Pattern
• Triple Top Chart Pattern

Bullish Classic Chart Patterns: (15Days)

• Ascending Continuation Triangle Chart Pattern
• Bottom Triangle Or Wedge Chart Pattern
• Continuation Diamond (Bullish) Chart Pattern
• Continuation Wedge Chart Pattern (Bullish)
• Cup with Handle Bullish Chart Pattern
• Diamond Bottom Chart Pattern
• Double Bottom Chart Pattern
• Flag Bullish Chart Pattern
• Head and Shoulders Bottom Chart Pattern
• Megaphone Bottom Chart Pattern
• Pennant Bullish Chart Pattern
• Round Bottom Chart Pattern
• Symmetrical Continuation Triangle Bullish
• Triple Bottom Chart Pattern
• Upside Breakout Chart Pattern – Rectangle

Education and Extras (4Days)

• Motive (Impulse) Waves

• Corrective Waves
• Bullish Trend Reversals
• Bearish Trend Reversals
• Chart Pattern Statistics

This Completes the List of Courses.

 

Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.

Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?

 

articles1.jpg

Megaphone Top Chart Pattern

This is the 34th Day course in a series of 60-Days called “Technical Analysis Training

You will get daily one series of this Training after 8 o’clock night (Dinner Finished)

Follow MoneyMunch.com Technical Analysis Directory and Learn Basic Education of Technical Analysis on the Indian Stock Market (NSE/BSE)

Technical-Analysis-Training

Megaphone Top Chart Pattern

Implication

A Megaphone Top also recognized as a Broadening Top is regarded a bearish signal, indicating that the existing uptrend may reverse to form a newer downtrend.

Description

A Megaphone Top is a reasonably scarce creation and is also popular as a Broadening Top. Its shape is reverse to that of a Symmetrical Triangle. The pattern grows after a intense further in a stock price and can last a number of weeks or even a few months.

A Megaphone Top is developed because the stock creates a collection of higher highs and lower lows. The Megaphone Top normally is made up of three ascending peaks and two descending troughs. The signal that the pattern is finish happens when prices fall below the lower low.

1291952_384066601721675_1565345625_n.jpg

Volume in the Megaphone Top generally peaks together with prices. It is normal to notice trading volumes enhance or stay high during the development of this pattern. The ultimate breakout and reversal can be complicated to determine at the time of its incident because volume does not look interesting.

Trading Considerations

Target Price

The target price produces an significant signal about the potential price move that this pattern shows. Think about whether the target price for this pattern is enough to supply appropriate comes back after your costs (such as commissions) have been taken into account. A ideal rule of thumb is that the target price must suggest a potential return of greater than 5% before a pattern should be regarded helpful, nevertheless you should consider the existing price and the volume of shares you intend to trade.

Criteria that Supports

Volume

Volume in the Megaphone Top usually peaks along with prices. A strong volume spike on the day of the pattern confirmation is a strong indicator in support of the potential for this pattern.

Underlying Behavior

The production of the pattern demonstrates a stage of time where bulls and bears are fighting to build control of the stock. The pattern takes place after the bulls have been asking and driving the stock price substantially higher. During the development of the Megaphone Top, then again, bears are applying growing impact on the stock and causing it to ready a collection of lower lows. The improving excitability ultimately produces a sense of anxiety, prospects to profit-taking, and deters many of the bulls from making any additional responsibilities. The bears ultimately triumph.

Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your Technical Analysis Training.

Technical Analysis Training (60 Days – Comprehensive Course)

Short-Term Chart Patterns (15 -Days)

Short-Term Chart Patterns: (7Days)

Gap Down Chart Pattern

Gap Up Chart Pattern

Gravestone Short-term Chart Pattern

Hammer Candle Stick Chart Pattern

Hanging Man Short-term Stock Chart Pattern

Inverted Hammer Stock Chart Pattern

Shooting Star Candle Stick Pattern

Bearish Short-Term Chart Patterns: (2Days)

Engulfing Line (Outside Bearish Reversal) Chart Pattern

Island Top Chart Pattern

Bullish Short-Term Chart Patterns: (6Days)

Engulfing Line (Bullish) Chart Pattern

Exhaustion Bar Chart Pattern (Bullish)

Inside Bar Chart Pattern

Island Bottom Chart Pattern

Key Reversal Bar (Bullish) Chart Pattern

Two Bar Reversal (Bullish) Chart Pattern

Indicators & Oscillators (Total – 11Days)

Bullish or Bearish Indicators: (3Days)

• Double Moving Average Crossover
• Price Crosses Moving Average
• Triple Moving Average Crossover

 

Bullish or Bearish Oscillators: (9Days)

 

• Bollinger Bands Oscillator
• Commodity Channel Index (CCI)
• Fast Stochastic Oscillator
• Know Sure Thing (KST) Oscillator
• Momentum Oscillator
• Moving Average Convergence/Divergence (MACD) Oscillator
• Relative Strength Index (RSI)
• Slow Stochastic Oscillator
• Williams %R Oscillator

Classic Chart Patterns (Total -29Days)

Bearish Classic Chart Patterns: (14Days)

 

• Continuation Diamond (Bearish) Chart Pattern
• Continuation Wedge (Bearish)
• Descending Continuation Triangle Chart Pattern
• Diamond Top Chart Pattern
• Double Top Chart Pattern
• Downside Break Chart Pattern – Rectangle
• Flag Bearish Chart Pattern
• Head and Shoulders Top Chart Pattern
• Megaphone Top Chart Pattern
• Pennant Bearish Chart Pattern
• Rounded Top Chart Pattern
• Symmetrical Continuation Triangle (Bearish)
• Top Triangle/Wedge Chart Pattern
• Triple Top Chart Pattern

Bullish Classic Chart Patterns: (15Days)

• Ascending Continuation Triangle Chart Pattern
• Bottom Triangle Or Wedge Chart Pattern
• Continuation Diamond (Bullish) Chart Pattern
• Continuation Wedge Chart Pattern (Bullish)
• Cup with Handle Bullish Chart Pattern
• Diamond Bottom Chart Pattern
• Double Bottom Chart Pattern
• Flag Bullish Chart Pattern
• Head and Shoulders Bottom Chart Pattern
• Megaphone Bottom Chart Pattern
• Pennant Bullish Chart Pattern
• Round Bottom Chart Pattern
• Symmetrical Continuation Triangle Bullish
• Triple Bottom Chart Pattern
• Upside Breakout Chart Pattern – Rectangle

Education and Extras (4Days)

• Motive (Impulse) Waves

• Corrective Waves
• Bullish Trend Reversals
• Bearish Trend Reversals
• Chart Pattern Statistics

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Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.

Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?