Megaphone Top is a bearish pattern signal. Its shape is opposite to that of a Symmetrical Triangle. Traders often find this patern in the long term. A Megaphone Top is formed because the stock makes a series of higher highs and lower lows. The signal that the pattern is complete occurs when prices fall below the lower low. The last peak is also for the confirmation. When the price breaks the 2nd line, it will continue the downtrend.
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