Analysis: Megaphone at USD\CAD

Megaphone Chart Pattern at USD\CAD FOREX Pair. The Megaphone, also known as the Broadening Top is a Reversal Chart Pattern, which usually signals reversal of trend. In this case it signals the reversal of trend to Bearish.

However, we also see a Ascending Channel that is bigger. Trades will be entered only after price breaks the Channel and performs a Pullback. Channel size is 200 pips which almost guarantees a reasonable Risk:Reward ratio. To learn how to trade Channels click here.

Trading
1. Short trade will be triggered when price breaks the channel downwards and performs a pullback to the Support trend line.