GOLD - Megaphone pattern at Midpoint, 5th wave up or failure?
- Megaphone patterns occur when price moves between two diverging (away from eachother) 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 have pointed out in the chart the big sell off today could be the end of the 4th swing within the pattern,
this would point to a possible 5th Swing back up to the ascending trend resistance of the pattern
** HOWEVER failure within these patterns generally occurs at the midpoint of the pattern, we are currently bang on the midpoint of the pattern so watch out for a decline from here to retest the lower trend support and possibly break through
*** There is also distinct hidden bull divergence on the RSI therefor my bias will be for a 5th swing up past the current 1535 resistance
THIS IS NOT A TRADE CALL
- 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 have pointed out in the chart the big sell off today could be the end of the 4th swing within the pattern,
this would point to a possible 5th Swing back up to the ascending trend resistance of the pattern
** HOWEVER failure within these patterns generally occurs at the midpoint of the pattern, we are currently bang on the midpoint of the pattern so watch out for a decline from here to retest the lower trend support and possibly break through
*** There is also distinct hidden bull divergence on the RSI therefor my bias will be for a 5th swing up past the current 1535 resistance
THIS IS NOT A TRADE CALL