This is the 34th Day course in a series of 60-Days called “Technical Analysis Training”
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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.
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.
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.
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TABLE OF CONTENTS
Candlestick and Chart Patterns (15 Days)
7 Most Important Candlestick Chart Patterns
- 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
Top 2 Bearish Chart Patterns
Top 6 Bullish Chart Patterns
- 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 (12 Days)
Bullish or Bearish Indicators
Bullish or Bearish Oscillators
- 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 (29 Days)
Bearish Classic Chart Patterns
- 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
- 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
Best Trading Theories (4 Days)
- Basics of Dow theory trading strategy forecasts
- Motive (Impulse) Waves
- Corrective Waves
- Wyckoff Chart Reading
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.