
Broadening Top or Megaphone Top
Broadening Top or Megaphone Top What Is a Broadening Top? A chart pattern with a series of higher peaks and lower dips is known as a spreading top. The pattern would seem like a megaphone or a reverse triangle if you were to draw a trendline across the top and bottom of the price movement. What Does the Broadening Top Indicate? Whether it's a broadening top or a broadening bottom, the most trustworthy sign that any broadening formation is telling us is that bullish and bearish investors are at odds with one another. While negative investors sell (or sell short) the stock, causing it to decline, bullish investors are bidding it higher. You consequently witness a string of successive lower lows (LLs) and higher highs (HHs). Are Broadening Tops Bearish or Bullish? While many long-term…