Broadening Formation
Expanding price swings with higher highs and lower lows, forming a megaphone shape — signals increasing volatility and often precedes a sharp reversal.
A Broadening Formation (Megaphone) is the opposite of a triangle: trendlines diverge as price makes progressively higher highs and lower lows. Volatility is expanding, not contracting.
The pattern typically signals distribution at a top or accumulation at a bottom. Sells are triggered on a break below the lower expanding trendline; buys on a break above the upper line. The pattern is difficult to trade inside — trades are taken only at confirmed line breaks.