What is Double Tops Cryptocurrency Patterns in Bitcoin Trading?
Trading Cryptocurrency Identify a Double Tops Pattern in Bitcoin Trading
The Best Patterns Tutorial for Beginner Traders - How to Identify and Trade Double Tops Bitcoin Chart Pattern
Bitcoin Chart Patterns for Day Trading - Bitcoin Patterns Explained
This Double Tops patterns charts tutorial explains how to identify cryptocurrency chart patterns - spotting cryptocurrency patterns is the first step when it comes to learning how to bitcoin trade with Double Tops cryptocurrency chart patterns in Bitcoin.
Double Tops bitcoin price patterns commonly form on Bitcoin Trading charts & this cryptocurrency pattern analysis tutorial explains how to trade and analyze charts using Double Tops cryptocurrency chart patterns.
Double Top Bitcoin Pattern
Double tops cryptocurrency chart pattern is a reversal bitcoin pattern that forms after an extended upwards cryptocurrency trend. As its name implies, this double top cryptocurrency pattern formation is made up of 2 consecutive peaks which are roughly equal, with a moderate trough between.
This double tops cryptocurrency pattern formation is considered complete once bitcoin price makes second peak and then penetrates lowest point between highs, called the neck line. The sell cryptocurrency signal from this double top cryptocurrency pattern setup formation occurs when the btcusd market breaks-out below neckline.
In BTCUSD, 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 cryptocurrency pattern setup is only confirmed once the neck-line is broken & the btcusd market moves below neckline. Neck line is just another name for the last support zone formed on chart.
Summary:
- Double tops btcusd crypto currency setup forms after an extended move upward
- This double tops cryptocurrency pattern formation demonstrates that there'll be a reversal in btcusd market
- We sell when bitcoin price breaks-out below neck-line: see below for the explanation.
What is Double Tops Cryptocurrency Patterns in Bitcoin Trading?
The double tops cryptocurrency chart pattern look like an M-Shape, the best reversal cryptocurrency signal is where the second top is lower than the first one as depicted below, this means that the reversal crypto signal can be confirmed by drawing a down-wards bitcoin trend line as illustrated below. If a trader opens a sell cryptocurrency signal the stop loss order will be placed just above this downwards bitcoin trend line.
M Shaped Double Tops Bitcoin Chart Pattern - What is Double Tops Cryptocurrency Patterns in Bitcoin Trading?
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