DOW MEGAPHONE PATTERN

Sunday, October 30, 2016

You better watch out, you better not cry, ProTrader Mike is going to tell you why...the Dow Jones and the stock market are about to take a crashing you know....What is the Megaphone Pattern? A megaphone pattern is illustrated in the following diagram:

 

 

 

The considered bearish, indicating that the current uptrend may reverse to form a new downtrend. A Megaphone Top is rare and must be played with patience. This develops after a strong advance and can last several weeks. The creation of the megaphone pattern reflects a period of time when bulls and bears are battling to gain control of the market. The pattern occurs after the bulls have been charging and driving the market much higher as we have seen in the last 24 months of trading. MOJO has a long position of UVXY as the markets heads under 18,000 this stock will soar. Last year at this time the DOW fell 1000 points and UVXY was up 40% in one day. During the formation of the Megaphone Top bears are exerting increasing influence on the market, causing it to set a series of lower lows. The increasing volatility eventually creates a sense of uncertainty, leads to profit-taking, and deters some of the bulls from making any further commitments. This should result in UVXY continuing to rise, and create a great profit opportunity. UVXY last price $15.70

 

 

 

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