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What is megaphone pattern?

Megaphone pattern is a pattern that consists of minimum of 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 a megaphone pattern in a stock price chart?

When a megaphone pattern emerges in a stock’s price chart, it indicates that there is uncertainty among market participants, causing fluctuations without a clear directional bias. The pattern consists of at least two higher highs and two lower lows formed from five different swings.

How do you know if a stock is a megaphone?

The megaphone pattern and its direction can help suggest where the stock is headed. A megaphone bottom pattern can show you that the stock is headed in an bullish direction. A megaphone top pattern can show you that the stock is headed in a bearish direction.

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