Example Trade Description Trading GS Dragon pattern & Megaphone patterns The GS Dragon pattern already provided great returns as it rose from an entry of $169 to $252. Currently, GS is consolidating in a smaller Megaphone pattern. Megaphone patterns usually provide two trading opportunities. It may be expected GS to consolidate at current levels in Megaphone pattern or may continue its bullish Dragon pattern trend to the upside. Trading the Megaphone reversal pattern. When prices reach the last swing point and fail to continue higher (as a breakout), Megaphone pattern may be presenting an opportunity to short on its reversal. Once price starts to decline from the last swing point, enter a short trade as prices may test the lower trendline. If GS price fails to break above the upper trend line, it may be presenting a smaller opportunity within the Megaphone pattern. Enter a short trade below $247 with a stop at $253 (upper trendline breakout level). Targets are placed at $236 (mid Megaphone level) and $220-225 (lower trendline levels). GS Completed MegaPhone pattern as it traded at lower-trendline in March-June 2017. Current Examples The following example shows SAP daily chart with Symm. Triangle pattern with embedded ABC Bullish pattern. .
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