60-Day Technical Analysis Course

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)


Megaphone Top Chart Pattern


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.


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.


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 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.

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?


Candlestick and Chart Patterns (15 Days)

7 Most Important Candlestick Chart Patterns

Top 2 Bearish Chart Patterns

Top 6 Bullish Chart Patterns

Indicators & Oscillators (12 Days)

Bullish or Bearish Indicators

Bullish or Bearish Oscillators

Classic Chart Patterns (29 Days)

Bearish Classic Chart Patterns

Bullish Classic Chart Patterns

Best Trading Theories (4 Days)

Kind attention: this course is helpful for beginner and intermediate traders. It’s free for everyone. Advanced modules, trading strategies, and data (in-depth) are available for Moneymunch’s premium subscribers.

Get free important share market ideas on stocks & nifty tips chart setups, analysis for the upcoming session, and more by joining the below link: Stock Tips

Have you any questions/feedback about this article? Please leave your queries in the comment box for answers.

Disclaimer: The information provided on this website, including but not limited to stock, commodity, and forex trading tips, technical analysis, and research reports, is solely for educational and informational purposes. It should not be considered as financial advice or a recommendation to engage in any trading activity. Trading in stocks, commodities, and forex involves substantial risks, and you should carefully consider your financial situation and consult with a professional advisor before making any trading decisions. Moneymunch.com and its authors do not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any losses or damages incurred as a result of using or relying on such information. Trading in the financial markets is subject to market risks, and past performance is not indicative of future results. By accessing and using this website, you acknowledge and agree to the terms of this disclaimer.
Previous ArticleNext Article
The Moneymunch editorial staff is a team of experienced financial writers and analysts with over a decade of experience in the financial markets. They have previously contributed to popular financial blogs and newspapers, and are passionate about providing accurate and up-to-date information to help both investors and traders make informed decisions. Trust the Moneymunch editorial staff to provide reliable and effective financial advice that can help you achieve your financial goals.

Write a Comment

Comment Policy: We love comments and appreciate the time that readers spend to share ideas and give feedback. However, all comments are manually moderated and those deemed to be spam or solely promotional will be deleted. Your email address will not be published. Required fields are marked *