Broadening Top (Megaphone)
Definition
Higher highs AND lower lows — swings expand like a megaphone at a market top.
Psychology
The market swings harder each time. That instability often ends with a fall.
Real-life analogy
💡 An argument that keeps escalating — every reply is louder than the last.
Expected direction
down
Entry / Stop / Target
Entry: On a close below the lower expanding trendline. · Stop: Above the latest higher high. · Target: Pattern height at the break projected downward.
Historical behaviour
Volatile and hard to trade; smaller size is wise.
Illustrative success rate
~55-60% resolve downward · Low reliability
Common beginner mistakes
- • Trading every swing inside the megaphone
- • Tight stops in a widening range
Quick quiz — did you understand?
1. Is the Broadening Top (Megaphone) generally considered bullish, bearish, or neutral?
2. After a confirmed Broadening Top (Megaphone), the expected direction is usually:
3. Which is a common beginner mistake with the Broadening Top (Megaphone)?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.