This chart pattern consists of higher-highs and lower-lows on both sides and requires a total of five (5) swings, testing each side two (2) times. We also define the middle of this chart pattern as the ‘mid-line’ which is used for taking profit-targets.
Megaphone patterns are ideal for following the long-term-trend; however, you can also use these patterns for counter-trend trading opportunities as well.
cup n handle (into)/ascending triangle (bullish)
An ascending triangle is a strong pattern used in technical analysis. It is created by price moves that allow for a horizontal line to be drawn along the swing highs and a rising trendline to be drawn along the swing lows. The two lines form a triangle. Traders often watch for breakouts from triangle patterns. The breakout can occur to the upside or downside. Ascending triangles are often called continuation patterns since price will typically break out in the same direction as the trend that was in place just prior to the triangle forming .An ascending triangle is tradable in that it provides a clear entry point, profit target, and stop-loss level. It may be contrasted with a descending triangle