Double Top and Double Bottom: Trend Reversal Patterns You Need to Know đ
The Double Top and Double Bottom patterns are powerful indicators of trend reversals in the crypto market.
Double Top:
This bearish reversal pattern forms when the price makes two peaks at similar levels, separated by a trough. It suggests that the asset's upward momentum is weakening, and once the price breaks below the trough (called the neckline), a downtrend is likely to follow.
Double Bottom:
This bullish reversal pattern is the opposite. It occurs when the price forms two lows at similar levels, separated by a peak. A breakout above the neckline signals the end of a downtrend and the start of a potential uptrend.
Key Points:
Double Top = Bearish ReversalDouble Bottom = Bullish ReversalConfirm the breakout for reliable signals.Measure the height between peaks and neckline for profit targets.
Mastering these patterns can help you make informed decisions in volatile markets!
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