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What is a Megaphone Top Pattern - More importantly - What does it mean?
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[QUOTE]Originally posted by Relentless.: [QB] Chart I grabbed a while back on the macro scale: [IMG]http://i1363.photobucket.com/albums/r713/relentlessdespot/djia1900s2_zpsded33ff7.png[/IMG] When looking at charts, always start with the largest time frame possible.. See the pattern forming over the last decade and a half? No? Let's zoom in a bit then: [IMG]http://i1363.photobucket.com/albums/r713/relentlessdespot/djia1900s1_zpsb5185616.png[/IMG] Ahh, there it is. With nice trend lines thrown in to help the eye. I really started looking at this maybe a year or more ago. I knew I'd seen that pattern somewhere before but just couldn't put my finger on what it was, or what it was called. I had a gut feeling about what it meant, but needed confirmation. So I went searching and searching. Sometime last December I finally figured it out. Finally found what it was called. [b]Megaphone Top Pattern[/b] What is a megaphone top pattern you ask? A Megaphone Top is a relatively rare formation and is also known as a Broadening Top. Its shape is opposite to that of a Symmetrical Triangle. The pattern develops after a strong advance in a stock price and can last several weeks or even a few months. In this case we are looking at a monthly chart, so the longevity of the pattern is expanded much further. In fact it has taken well over a decade to form. What are the implications? Well that's why I'm posting it here in the off topic board. Has the $DJIA ever had a true trend reversal? Not based on that chart.. and that's the entire life of the index. What does a trend reversal mean to us? What is in the news currently which might aid the completion of this pattern? Russia, China, Iran, all starting to trade in currencies other than the dollar. That's one The FED starting to talk about finally raising rates. That's two Banks in the states starting entertain the notion of negative rates on deposits, thereby ensuring a bank run nation wide. That's three Bammy opening the borders to an influx of minimum skill, illiterate invaders right when [b]real[/b] [b]unemployment[/b] is at an all-time high. That's four Shall I go on? Nah, you get the idea. [/QB][/QUOTE]
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