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How Can I Differentiate a Double Bottom from a Double Top?

How Do I Identify and Trade Double Bottom Bitcoin Chart Pattern and Double Tops Bitcoin Chart Pattern

A double tops bitcoin pattern has an M shape and it occurs at a market top henceforth its name double top cryptocurrency chart pattern and it signals a bearish bitcoin price reversal in the btcusd market. Once a double top cryptocurrency chart pattern is confirmed then the btcusd market will be regarded to be bearish, therefore a double tops is bearish.

A double bottoms bitcoin chart pattern has a W shape and it occurs at a market bottom therefore its name double bottom cryptocurrency chart pattern and it signals a bullish bitcoin price reversal in the btcusd market. Once a double bottom cryptocurrency chart pattern is confirmed then the btcusd market will be regarded to be bullish, henceforth a double bottom is bullish.

To identify double top and double bottoms cryptocurrency chart patterns the examples below explain the 2 bitcoin patterns:

Double Top Bitcoin Crypto Currency Pattern

Double tops crypto chart pattern is a reversal crypto setup that forms after an extended upwards crypto trend. As its name implies, this double tops cryptocurrency pattern formation is made up of 2 consecutive peaks that are roughly equal, with a moderate trough in between.

This double tops cryptocurrency pattern formation is considered complete once bitcoin price makes second peak & then penetrates lowest point between highs, called the neckline. The sell crypto signal from this double top cryptocurrency pattern setup formation occurs when the bitcoin crypto market breaks below the neck-line.

In Bitcoin Crypto Currency, this double tops crypto setup formation is used as a early warning signal that a bullish Bitcoin Crypto Currency trend is about to reverse. However, double top crypto pattern setup is only confirmed once the neckline is broken and the bitcoin crypto market moves below neck-line. Neck-line is just another term for the last support zone formed on the trading chart.

Summary:

  • Double tops bitcoin crypto currency pattern setup forms after an extended move upwards
  • This double tops cryptocurrency pattern formation demonstrates that there will be a reversal in btcusd market
  • We sell when bitcoin crypto currency price breaks out below the neckline point: see below for explanation.

How Can I Differentiate Double Bottom from Double Top?

Double Top Bitcoin Pattern - How Can I Differentiate a Double Bottoms from a Double Top?

Double Bottom Bitcoin Pattern

Double bottom cryptocurrency chart pattern is a reversal bitcoin pattern that forms after an extended down-wards cryptocurrency trend. Double bottom cryptocurrency chart pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in between.

This double bottom cryptocurrency pattern formation is considered complete once bitcoin price makes second low & then penetrates the highest point between lows, known as the neck-line. The buy indication from this bottoming out signal occurs when the btcusd cryptocurrency market breaks the neckline to the upside.

In BTCUSD Crypto, this double bottoms cryptocurrency pattern setup formation is an early warning signal that the bearish BTCUSD Crypto trend is about to reverse. It's only considered complete/confirmed once the neckline is broken. In this double bottoms cryptocurrency setup formation the neck line is the resistance level for the bitcoin price. Once this resistance is breached the bitcoin crypto market will move upward.

Summary:

  • Double bottom btcusd crypto setup forms after an extended move downward
  • This Double bottom cryptocurrency pattern formation demonstrates that there will be a reversal in btcusd market
  • We buy when btcusd crypto price breaks above the neck-line point: see below for explanation.

How Can I Differentiate a Double Bottom from a Double Top?

How Can I Differentiate a Double Bottom from a Double Tops?

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