QQQ is now creeping up the top of the red rising wedge it began forming a year ago. It’s working on the top for a price-channeled move within the rising wedge, and has also formed a rising megaphone (bright blue) inside the wedge.
That blue rising megaphone counts as a way of extending the wedge. An extended rising wedge is a strong favorite to correct to its bottom once it finally breaks down.
The rising wedge has carried QQQ to the top of a rising megaphone that began in 2010 as well as the navy blue megaphone that began forming in the summer of 2014.
QQQ needs to retrace to at least VWAP of the orange megaphone, which would take it to the bottom of the red rising wedge. It’s a favorite to correct sooner or later to the bottom of the navy blue rising megaphone at roughly 42.
And QQQ could remain stuck in the navy blue megaphone for years to come.
I’ve drawn a smallish fast top on the navy blue megaphone, but tops like this can take months to form.
Note also that the green scenario is a simple, standard way for the navy blue rising megaphone to extend. That is another trading formation that could extend for years, though usually we’d see a return to the formation bottom first.