Megaphone Chart Pattern

A Megaphone is also known as a broadening pattern. This pattern describes a market in confusion with no probable direction up or down. This pattern may suggest one to sit on the sidelines until the market resolves itself. A trader may trade this pattern but must understand the implications of such a trade and the potential erratic price movements that are likely to happen.

The bigger move takes precedence which is a move done on this chart, consequently, the bias is for a downward movement, but to a far lesser likelihood than other patterns like and ascending or descending triangle for example.