Bitcoin’s megaphone pattern, explained: How to trade it

Main meals

• The Bitcoin Megaphone style is at least higher and two of its lowest levels, which is an expanded structure.

• Connecting these highlands and declines with trend lines creates a Migafoon -like appearance, reflecting instability in the market.

• Training signals indicated increased volatility, as price fluctuations became more clear over time.

• Depending on the direction of the direction, the pattern can indicate a possible escalation (upward) or down (down).

MiGon style, also known as widespread composition, is a technical analysis scheme style that traders note in various financial markets, including Cross currencies Like bitcoin.

This style is characterized by its distinctive shape, similar to loudspeakers or expansion triangle, and indicates an increase in volatility and the decline in the market. Below are its distinctive characteristics:

• The highest levels and low reduction: The style consists of at least the highest level and two low levels, which constitute an expansion structure. Each subsequent peak is higher than the previous summit, and each basin is less, creating apartment lines.

• Virgin trend lines: When the trend lines linking the upper altitudes and low declines are drawn, they diverge, and form an expanded pattern similar to loudspeakers.

• Increased volatility: The formation of this pattern indicates an increase in fluctuations as price fluctuations become more clear over time. This reflects a struggle between buyers and sellers, which leads to wider price movements.

Do you know? Bitcoin Megaphone is different from the tradition of the traditional Megaphone trading as it is not involved in this huge physical process.

1.

This pattern difference indicates a potential outbreak of the upper side.

• The initial upward trend: The price begins in the upward direction, as it reaches the first peak (point 1).

• The first decline: The withdrawal occurs, which creates a low decrease (Point 2) is still higher than the starting level of the previous direction.

• High formation: Prices again, overrun higher and higher formation higher (point 3).

• Decreased expansionIt follows a more clear decrease, which leads to a low decrease (point 4), which extends the scope of price fluctuations.

• CollapseThe price collapses over the resistance line (Point 5), which confirms the upper outbringing.

2. Forming the descending loudspeakers

This version of the style indicates an outbreak on the potential negative side.

• The initial downward trend: The price starts with a declining movement, determining the lowest level (point 1).

• The first declineIt follows a simple upward correction, and it constitutes a lower height (point 2).

• Decreased expansion: New low forms (point 3), and increase the expansion of a range.

• High formation The price falls again, but it is still struggling to keep its highest levels (point 4).

• Collapse and reflectionThe price collapses below the support line (point 5), which confirms a declining outbreak.

Do you know? The large -sized penetration of the loudspeakers style indicates the strong market condemnation, confirming a real step. Low size? It is likely to be fake, with the opposite of the price. Remember, wait for the high level of sound before entering.

The history of Megavone in Bitcoin Trading

Speed ​​loudspeakers, or the formation of expansion, appeared in different axial moments in Bitcoin trading date:

1. The first days: 2013-2014

In Bitcoin (BTCCircassian years, severe volatility often produces expansion formations. During this period, merchants noticed loudspeakers – often with a declining dye – reflects wild price fluctuations as the market has struggled to find balance.

Although these early examples are less documented, these early examples have since become reference points to understand how chaotic market conditions can appear as loudspeakers.

2. Late 2017 – Detaire Form 2018

With Bitcoin rose at the highest level of the time at the time near $ 20,000 in late 2017, the pattern of dumping loudspeakers appeared on daily graphs. This composition, which is characterized by the different trend lines with its highest levels and lowest levels, indicates an increase in frequency and the pressure of the rising sale.

a lot Technical analysts looked at it as a warning sign From the imminent reflection – expectations made with the dramatic correction witnessed in early 2018.

3.

In early 2021, with Bitcoin approaching a $ 60,000 threshold, traders noticed a bullish Megavone style on multiple time frames. This style is characterized by a series of gradually higher altitudes and the higher decline, and pointed to a period of increased fluctuations along with cautious optimism.

The subsequent penetration confirmed a strong bullish momentum, which enhances the health of the pattern as a predictive tool in the maturity market.

Trading strategies for loudspeakers

In this section, we will explore a number of trading strategies compatible with Megaphone.

1.

The missing trading of huge magnitude includes entering a trade when the price is decisively separated from the style limits with a strong assertion of the size.

A. Determine the key levels

• Draw up and lower trend lines: Connect the upper rises of the pattern and the low decrease in the formation of loudspeakers. These trend lines distinguish resistance and critical support levels.

• Confirmation of the hack area: In the upscale scenario, the upper resistance line is the keys to monitor. In a landline scenario, focus on the lower support line.

for. Confirm size

• Look to increase the sound level: Since price resistance (bi -up) or support, height in size indicates a strong participation in the market.

• Reducing false beings: If the size remains weak when hacking, there is a higher chance of fake to the style.

C. Entry points

Do you know? The stopping position in the losing inside the loudspeakers can help prevent excessive losses in the event of penetration failure and prices return to the style, giving you additional protection in the volatile markets.

D. Profit goals

Measure the height of the pattern by finding the vertical distance between the lowest and highest points, then use part of this measurement (usually about 60 %) to determine the level of balanced profit.

By dropping this percentage of the penetration point, whether it is higher than the upper resistance (for an upper scenario) or less than low support (for landing), merchants can set realistic goals while maintaining a favorable risk ratio to the interrogation.

2. Slanging trading within the style

Slaved trading within the loudspeakers style includes taking advantage of temporary prices between the boundaries of support and resistance boundaries – without necessarily waiting for a permanent outbreak.

A. Determine the main lines

• Higher Resistance (R1, R2): These lines represent areas where the price is likely to face the sale pressure.

• Axial line: The medium point reference that can act as temporary or resistance support, depending on the direction of moving the price.

• Less support (S1, S2): The areas where the purchase pressure may appear.

for. Find the purchase signals near the support

In the upscale loudspeakers, consider entering long sites near the lower support lines (S1 or S2), especially when you see a prominent or rising composition on the candles.

Confirm signals with oscillator (for example, RSI, Stochastics) or high size, indicating a transformation in the momentum.

C. Selling signals near the resistance

In the descending loudspeakers (or even a thunderbolt one, if you are comfortable for short for sale), traders may search for short entries near the upper resistance lines (R1 or R2).

This reflective pattern or low size at resistance levels can enhance the possibility of price reflection.

D. Stop loss and take profit

Place the stop loss over the resistance line (for example, a little top than the R2) to reduce losses if the price broke out higher.

For profitable goals, consider going out near the PIVOT line or first support (S1). In cases of strong landfill, take partial profits in the S1 and aim to S2 with the remaining position.

E. Use the axis line as a decision area

The axle line in the center is often a short -term turning point:

• Above the axis: The bias may be optimistic, preferably long situations.

• Below the axis: The bias may be dumping, preferably short situations.

If the price is constantly hovering around the axis line without any clear direction, wait for even to test either the level of support or resistance to confirm the next swing.

and. Combining size and indicators

Look for sound screws in each support or resistance test. Increased size in size when the price bounces of support or reflects from the resistance can indicate a stronger step.

also, tools Such as the RSI or MacD or average MacD can help confirm peak/excessive sale, which enhances the issue of the reflection trade.

3. The wrong penetration strategy

The wrong Megaphone Megaphone style trading includes the recognition of when the price is briefly violated by the support or resistance of amplifiers, just to return quickly within its borders – a scenario often accompanied by a low size.

In such cases, instead of chasing the penetration, traders are looking to confirm the reflection before entering into an anti -directional trade.

This strategy requires determining the main trend lines that determine the pattern, monitor the size of the weak signals, and enter the trade once the price is re -insert Reducing losses and setting profit goals Based on the size of the composition.

Risk management and considerations

Looking at the bitcoin fluctuations and swinging wild prices in the Megaphone style, strong risk management is necessary to protect your trading capital. Here are many major strategies that must be combined in your commercial plan:

1. Awareness volatility

• The scope of expansion of loudspeakers indicates increased uncertainty. You realize that rapid fluctuations can lead to great gains and great losses on an equal footing.

• Monitoring the morale of the market closely and be prepared for sudden repercussions, especially during the wrong collapses, as the low volume may indicate a lack of condemnation.

2. limit the situation and leverage

• Change the size of the situation: Determine your position based on the maximum risk you want to take (usually 1 % – 2 % of your trading account).

• Cautious use of the leverage: While the leverage can exaggerate profits, it evenly increases possible losses. Use the leverage slightly and make sure that your risk parameters can accommodate amplification fluctuations.

3. The levels of stopping loss and profit levels

• Stop orders: Put the stopping orders to lose within the limits of the formation of loudspeakers. This location determines to reduce losses if the price is unexpectedly reflected.

• The targets aimed at profit: Calculate your profit goals by measuring the vertical distance of the pattern and dropping a reasonable percentage from the penetration point. This guarantees you insurance gains while maintaining a favorable percentage of risks to the reward.

4. Adaptive risk controls

Market conditions can turn quickly. Constant reassessment through:

• Monitor the size and momentum: Use sound screws and momentum to adjust the levels of stopping or seizure of profit dynamically, ensuring that your exit strategy adapts to the advanced market.

• Using excessive stops: Think of employing the increasing stoppage orders to lock profits as the price moves in your favor while still providing room for possible gains.

This is all – the trading of happy loudspeakers!