GOLD - Megaphone pattern completed 4th swing with hidden bull
MEGAPHONE / BROADENING TOP PATTERN
- Megaphone patterns occur when price moves between two diverging (away from each other) trend lines
- Upper trend resistance forming higher highs
- Lower trend support forming lower lows
- This patterns tends to play out in 5 distinct "swings", with each swing being larger than the next
** As shown in the chart I believe this large sell off to be the 4th swing within the pattern
** The addition of the evident hidden bull divergence on the indicated lows further suggests to me that this may be a turning point within the pattern
** As well as this the strong bull trend and rally prior to this patterns formation gives further bias to the upside
** If the 5th swing were to complete we would need to see a solid move past the midpoint of the pattern at 1535 as this is the most frequent failure point for this kind of pattern
THIS IS NOT A TRADE CALL
- Megaphone patterns occur when price moves between two diverging (away from each other) trend lines
- Upper trend resistance forming higher highs
- Lower trend support forming lower lows
- This patterns tends to play out in 5 distinct "swings", with each swing being larger than the next
** As shown in the chart I believe this large sell off to be the 4th swing within the pattern
** The addition of the evident hidden bull divergence on the indicated lows further suggests to me that this may be a turning point within the pattern
** As well as this the strong bull trend and rally prior to this patterns formation gives further bias to the upside
** If the 5th swing were to complete we would need to see a solid move past the midpoint of the pattern at 1535 as this is the most frequent failure point for this kind of pattern
THIS IS NOT A TRADE CALL