Posted by junkmaylbox on 24th of Jul 2009 at 11:08 am
The expanding triangle (aka the megaphone formation) signifies a
competition between buys and sellers, each of which expects the
market to go in their own direction: hence the broadening scope. It
may indicate market manipulation: last year I spotted that
formation on CSIQ in May - August. CSIQ is a solar energy stock,
and you know the story of oil futures going up to 147.
The H&S is a natural formation for market tops. That it
did not play out signifies that the natural contraction was
prevented from running its course by arrival of powerful players on
the market to support it and move higher. GS through its ties to
international bankers is one big culprit.
Posted by asantana on 24th of Jul 2009 at 11:11 am
Thank you junk for responding.
My understanding is that the broadening top is a bearish
pattern. If this is the case, then we have a H&S
(bearish) having another bearish pattern built around it.
Does this signify a more complex "bearish" top then?
Broadening Top/Megaphone
Posted by asantana on 24th of Jul 2009 at 10:50 am
Can someone please touch on the sgnificance of this the H&S pattern turning into this broadening top (also known as Megaphone)?
significance of the expanding triangle (megaphone formation)
Posted by junkmaylbox on 24th of Jul 2009 at 11:08 am
The expanding triangle (aka the megaphone formation) signifies a competition between buys and sellers, each of which expects the market to go in their own direction: hence the broadening scope. It may indicate market manipulation: last year I spotted that formation on CSIQ in May - August. CSIQ is a solar energy stock, and you know the story of oil futures going up to 147.
The H&S is a natural formation for market tops. That it did not play out signifies that the natural contraction was prevented from running its course by arrival of powerful players on the market to support it and move higher. GS through its ties to international bankers is one big culprit.
Thank you junk for responding. My
Posted by asantana on 24th of Jul 2009 at 11:11 am
Thank you junk for responding.
My understanding is that the broadening top is a bearish pattern. If this is the case, then we have a H&S (bearish) having another bearish pattern built around it. Does this signify a more complex "bearish" top then?
From one the technical analysis
Posted by junkmaylbox on 24th of Jul 2009 at 11:13 am
From one the technical analysis textbooks I recall that the pattern is bearish 9 times out of 10: the ratio is 9:1.