Chart patterns · Advanced

Broadening Formations (Megaphone Pattern)

A 1-minute lesson from the MarketPro academy, one of 22 in chart patterns.

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Short answer

A broadening formation, often called a megaphone pattern, is the opposite of a triangle: instead of converging, the trendlines connecting swing highs and swing lows diverge, reflecting a market becoming progressively more volatile and less controlled. The pattern shows a widening series of higher highs and lower lows, indicating that neither buyers nor sellers are gaining consistent control and that swings are growing larger rather than smaller.

A broadening formation, often called a megaphone pattern, is the opposite of a triangle: instead of converging, the trendlines connecting swing highs and swing lows diverge, reflecting a market becoming progressively more volatile and less controlled.

The pattern shows a widening series of higher highs and lower lows, indicating that neither buyers nor sellers are gaining consistent control and that swings are growing larger rather than smaller.

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