Broadening Top (Megaphone) Chart Pattern — How to Spot and Trade It

Higher highs AND lower lows — swings expand like a megaphone at a market top.

In plain words

An argument that keeps escalating — every reply is louder than the last.

What the classic books say

The Broadening Top (Megaphone) is a reversal pattern with reference reliability Low and illustrative behaviour of ~55-60% resolve downward (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). Volatile and hard to trade; smaller size is wise.

Level by level

Beginner

The market swings harder each time. That instability often ends with a fall.

Intermediate

Expanding swings show emotional, two-sided battling — late in an uptrend it usually favours sellers.

Advanced

Five-point broadening formations at highs resolve down more often; partial rises warn of the break.

Trade plan (educational template)

• Entry: On a close below the lower expanding trendline.
• Stop-loss: Above the latest higher high.
• Target: Pattern height at the break projected downward.
• Check the numbers with the Risk-Reward calculator before any entry.

Common beginner mistakes

• Trading every swing inside the megaphone
• Tight stops in a widening range

Practise it now

• ▶ Draw the Broadening Top (Megaphone) with live trendlines and a ghost forecast
• 📖 Full lesson in the Learning Hub

_Educational content only — not financial advice. Historical behaviour never guarantees future results._