Recently, I’ve observed the appearance of a trumpet pattern in trading again, and this pattern definitely warrants thorough study. During the most intense market volatility, the trumpet pattern often emerges, and many people’s understanding of it is still not deep enough.

The trumpet pattern is essentially a reversal signal, especially prone to appear when market sentiment is extremely exuberant or panicked. Visually, it looks like a gradually widening trumpet, with increasing amplitude of ups and downs. This is not random fluctuation, but a reflection of fierce battles between bulls and bears in the market.

To identify the trumpet pattern, there are several key features to watch for. First, price fluctuations continuously expand, with new highs constantly being made and lows being pushed lower, outlining a shape with expanding upper and lower boundaries. A complete trumpet pattern requires at least two higher highs and two lower lows to form. Second, trading volume will significantly increase, especially when the price breaks through key levels; the change in volume is particularly notable, serving as an important reference for judging strength.

There are three common ways the trumpet pattern manifests. An ascending trumpet usually appears at the end of an uptrend, and caution is advised because it often signals that the rally is about to end, with a potential decline following. A descending trumpet is the opposite; when it appears at the end of a downtrend, it typically indicates the market is about to bottom out and rebound, so it may be a good opportunity to buy on dips. The symmetrical trumpet is more neutral, with an unclear direction; a breakout could go either up or down, and it’s necessary to combine other technical indicators for judgment.

The most important aspect of the trumpet pattern is understanding the market logic behind it. When you see this pattern, the market is in a state of extreme uncertainty, with both bulls and bears desperately fighting for control. Therefore, the key is to wait for a breakout; the direction of the breakout combined with volume is the real trading signal. Don’t be scared by the intermediate fluctuations—patience and waiting for the pattern to complete and the breakout to be confirmed is the correct approach.