GOLD - Midpoint of Megaphone pattern cleared, swing 5 incoming
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 i pointed out in my initial chart, the big sell off touching the lower trend line, I believed could have been the 4th swing within the pattern, and that this would point to a possible 5th Swing back up to the ascending trend resistance of the pattern
** I also pointed out failure within these patterns generally occurs at the midpoint of the pattern, we were currently bang on the midpoint of the pattern so to watch out for bearish decline
*****Now we are clear of the midpoint of the pattern ( most often the failure point ) i strongly believe we are on swing 5 of the pattern all the way past previous resistance at 1535 to 1550 +
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 i pointed out in my initial chart, the big sell off touching the lower trend line, I believed could have been the 4th swing within the pattern, and that this would point to a possible 5th Swing back up to the ascending trend resistance of the pattern
** I also pointed out failure within these patterns generally occurs at the midpoint of the pattern, we were currently bang on the midpoint of the pattern so to watch out for bearish decline
*****Now we are clear of the midpoint of the pattern ( most often the failure point ) i strongly believe we are on swing 5 of the pattern all the way past previous resistance at 1535 to 1550 +
THIS IS NOT A TRADE CALL