A megaphone technical setup happen when theres a widening interest in demand and supply on what is actually fair value zone that they wanted to buy in. Thus causing a bigger and bigger swing in the top and bottom floor and ceiling of prices.
Biggest mistake that Ive done so far would be anticipating market turning point, thus causing me to always be losing money especially couter trend moves. Rather than Anticipation/predictive moves, why not wait for market to let u know when they have turned. + alittle Strong up volume moved in the right direction?
Compounded with little time to expiry options. Adding more undue stress to the position.
All this, combined with the fundamentals of the economy, will lead in my personal view to a second much heavier bearish wave. But I think it might take months, probably also couple of years to reach the bottom.
For this megaphone (or diamond) to be completed it will take lot of time, but once we reach the bottom... there might be extremely good opportunity to buy at the lowest prices ever...
It can be a good place where smart money will tend to push up to trigger lots of stops at that level. Cheers!