How do I trade my megaphone pattern?

To trade a megaphone breakout pattern as a continuation of its up-trend, trades are taken in the direction of the breakout/breakdown from the pattern (see “Breaking out,” below). When a price bar closes outside the pattern (above upper trendline) in the direction of the breakout/breakdown, a long trade is triggered.

What is megaphone pattern?

Megaphone pattern is a pattern that consists of minimum ofo higher highs and two lower lows. The pattern is generally formed when the market is highly volatile in nature and traders are not confident about the market direction. Megaphone pattern is known to give multiple trading opportunities to the trader.

What is bullish market?

A bull market is the condition of a financial market in which prices are rising or are expected to rise. The term “bull market” is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, real estate, currencies, and commodities.

Is expanding triangle bullish?

In a bullish reversal (an expanding triangle bottom), it has enough strength to rally above the last higher high, trapping longs in; it then collapses to a third low, trapping longs out and bears in on the lower low, and then reverses up, forcing both sides to chase the market up.

Is a Rising Wedge bullish?

The rising (ascending) wedge pattern is a bearish chart pattern that signals an imminent breakout to the downside. It’s the opposite of the falling (descending) wedge pattern (bullish), as these two constitute a popular wedge pattern.

What is diamond pattern?

A diamond top formation is a chart pattern that can occur at or near market tops and can signal a reversal of an uptrend. A diamond top formation is so named because the trendlines connecting the peaks and troughs carved out by the security’s price action form the shape of a diamond.

What does expanding triangle mean?

Expanding Triangles. An expanding triangle can be either a reversal or a continuation pattern and is made of at least five swings (sometimes seven, and rarely nine), each one greater than the prior one. Part of its strength comes from its trapping traders on each new breakout.

Which is the strongest candlestick pattern?

The 5 Most Powerful Single Candlestick Patterns

Doji. Considered to be one of the most important single candlestick patterns, the doji can give you an insight into the market sentiment.
Dragonfly doji.
Gravestone doji.
Spinning top.
Hammer.