Broadening Top (Megaphone)
BearishReversalIntermediateHigher highs and lower lows at the same time. The swings get wild, then break down.
Verdict: SkipBitcoin 4H: 0 trades, won —, avg trade — vs random day — (too few trades to judge). Backtest
Price has been rising. It makes a high, then pulls back.
step 1/7
Trade rules
| Direction | Short (sell) |
|---|---|
| Entry | After an advance, three rising swing highs and two falling swing lows; a candle CLOSES below the lowest low. |
| Cancelled if | Price trades above the highest high before that close. |
| Target | Full height, projected from the breakout |
3 common mistakes
- Shorting the third high before the pattern breaks down.
- Calling any choppy range a megaphone: you need higher highs AND lower lows.
- Ignoring position size: the stop is a whole pattern away.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 · too few trades to judge | 0 | — | — | — |
| US large caps (50) · 1D · 2016-2026 | 34 | 50% | −2.85% | −2.85% |
Verdict: SkipLost money on average on US large caps. Bitcoin had too few signals to judge.
pattern −97%random −97%