Hello, friends!๐ Today we talked about double tops and double bottoms. Let's try to apply a double top pattern on the Bitcoin chart!๐
๐บ๐บDouble tops tend to form when the price reaches a high within a current uptrend and then pulls back. It rallies again to the previous high area before stalling and pulling back, falling below the low of the previous pullback. The reason it's called a double top is because the price peaked at the same area twice and was unable to reach new highs, above previous resistance.
Once this popular reversal pattern is confirmed or complete, traders can place a short trade or exit their long positions, of course, once the price drops below the previous swing low.
๐ธTarget Areas: When determining a potential profit target area, we use the height of the pattern, minus the breakout price point.
โก๏ธThe most important thing to understand in the current situation is that we definitely need confirmation of the breakout point. Only after this can we place a short position.
If you haven't seen my educational post today, I'll attach the link below!๐
If You like what I do for You, support me with a ๐ , subscribe to the channel, and stay with me!๐ซถ
Thanks for Your attention๐
Always sincerely with You๐๐
Your Kateryna๐
๐บ๐บDouble tops tend to form when the price reaches a high within a current uptrend and then pulls back. It rallies again to the previous high area before stalling and pulling back, falling below the low of the previous pullback. The reason it's called a double top is because the price peaked at the same area twice and was unable to reach new highs, above previous resistance.
Once this popular reversal pattern is confirmed or complete, traders can place a short trade or exit their long positions, of course, once the price drops below the previous swing low.
๐ธTarget Areas: When determining a potential profit target area, we use the height of the pattern, minus the breakout price point.
โก๏ธThe most important thing to understand in the current situation is that we definitely need confirmation of the breakout point. Only after this can we place a short position.
If you haven't seen my educational post today, I'll attach the link below!๐
If You like what I do for You, support me with a ๐ , subscribe to the channel, and stay with me!๐ซถ
Thanks for Your attention๐
Always sincerely with You๐๐
Your Kateryna๐
Write me if You need my support or wanna trade together ๐๐ป
Join me in๐๐ป:
๐๐ฃ t.me/+aAADzO1OqsQ2MGI0
๐ฐ I'm using Bybit and I highly recommend it to You. By using my link - You'll get a nice bonus
www.bybit.com/invite?ref=7X0W2A
Join me in๐๐ป:
๐๐ฃ t.me/+aAADzO1OqsQ2MGI0
๐ฐ I'm using Bybit and I highly recommend it to You. By using my link - You'll get a nice bonus
www.bybit.com/invite?ref=7X0W2A