Hello, my lovely and so clever friends! Today we are talking about <<Reversal Patterns of Technical Analysis>> 🧡
💥Head & Shoulders Pattern💥
After the pattern has become clearly visible, namely, the right shoulder is clearly visible, the trader needs to wait for the neckline breakout. Breakouts occur on strong impulses with a sharp increase in volume. Therefore, in order not to miss the entry and enter at the best price, it's better to use a sell stop order.
To calculate where the price will go after the breakout of the pattern, it is enough to measure the height of the pattern (vertical from the maximum of the head to the neckline) and postpone it to the breakout point.
💥Inverted Head & Shoulders Pattern💥
An inverted head and shoulders pattern occurs in a downtrend and heralds an uptrend. The rules for working on a figure are similar to the previous ones.
It is worth noting that the head and shoulders pattern is rarely encountered in its pure form. Be careful!
💥 Double Bottom Pattern 💥
After you have identified the pattern on the price chart, you need to wait for the breakout of its resistance line. If the price has broken through the resistance, then the target will be the width of the pattern's range - the distance from the lowest point to the resistance.
💥Double Top Pattern 💥
A double top is similar to a double bottom. The only difference is that this pattern is reversed and occurs on uptrends.
The number of extrema in a pattern can be not only double, but also triple, and even more. But the rules of work will be identical for everyone - enter on a breakout, postpone the target to the height of the figure and wait for its execution.
💥Diamond💥
We measure the height and wait for the breakdown of the diamond. If a breakout has occurred, then the price movement target will be the height of the pattern from the breakout point.
💥Cup & Handle💥
Trades are opened on the breakdown of the "handle" upwards. Target is the height of the figure.
Thanks for Your attention🙏🏻
Stay in touch🧡
Sincerely yours Rocket Bomb🚀💣
My previous work for You 💋
💥Head & Shoulders Pattern💥
After the pattern has become clearly visible, namely, the right shoulder is clearly visible, the trader needs to wait for the neckline breakout. Breakouts occur on strong impulses with a sharp increase in volume. Therefore, in order not to miss the entry and enter at the best price, it's better to use a sell stop order.
To calculate where the price will go after the breakout of the pattern, it is enough to measure the height of the pattern (vertical from the maximum of the head to the neckline) and postpone it to the breakout point.
💥Inverted Head & Shoulders Pattern💥
An inverted head and shoulders pattern occurs in a downtrend and heralds an uptrend. The rules for working on a figure are similar to the previous ones.
It is worth noting that the head and shoulders pattern is rarely encountered in its pure form. Be careful!
💥 Double Bottom Pattern 💥
After you have identified the pattern on the price chart, you need to wait for the breakout of its resistance line. If the price has broken through the resistance, then the target will be the width of the pattern's range - the distance from the lowest point to the resistance.
💥Double Top Pattern 💥
A double top is similar to a double bottom. The only difference is that this pattern is reversed and occurs on uptrends.
The number of extrema in a pattern can be not only double, but also triple, and even more. But the rules of work will be identical for everyone - enter on a breakout, postpone the target to the height of the figure and wait for its execution.
💥Diamond💥
We measure the height and wait for the breakdown of the diamond. If a breakout has occurred, then the price movement target will be the height of the pattern from the breakout point.
💥Cup & Handle💥
Trades are opened on the breakdown of the "handle" upwards. Target is the height of the figure.
Thanks for Your attention🙏🏻
Stay in touch🧡
Sincerely yours Rocket Bomb🚀💣
My previous work for You 💋
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