Double Top forming on 15 M timeframe
Observations:
Double Top Formation: A bearish reversal pattern, indicating potential for price to move downward.
Resistance Level: Around $0.015047, marked in red.
Support Level: Around $0.014675, marked in green.
Downward Momentum: Price broke below the neckline (support level) of the double top.
Volume Confirmation: Increasing sell volume after the double-top pattern.
Momentum Indicator: The histogram (MS) shows declining strength, aligning with the bearish momentum.
Short Trade Setup:
Entry Point: Enter a short trade after price retests the support level as resistance around $0.014675, confirming the breakout.
Take Profit (TP): TP1: $0.014350 (previous key level of support).
Stop Loss (SL): Place the SL above the neckline of the double top at $0.014750 (slightly above to account for false breakouts).
Risk-Reward Ratio:
Entry: $0.014675
SL: $0.014750 (7.5 pips above entry).
TP1: $0.014350 (32.5 pips below entry).
Risk/Reward for TP1: 1:3.43
Double Top Formation: A bearish reversal pattern, indicating potential for price to move downward.
Resistance Level: Around $0.015047, marked in red.
Support Level: Around $0.014675, marked in green.
Downward Momentum: Price broke below the neckline (support level) of the double top.
Volume Confirmation: Increasing sell volume after the double-top pattern.
Momentum Indicator: The histogram (MS) shows declining strength, aligning with the bearish momentum.
Short Trade Setup:
Entry Point: Enter a short trade after price retests the support level as resistance around $0.014675, confirming the breakout.
Take Profit (TP): TP1: $0.014350 (previous key level of support).
Stop Loss (SL): Place the SL above the neckline of the double top at $0.014750 (slightly above to account for false breakouts).
Risk-Reward Ratio:
Entry: $0.014675
SL: $0.014750 (7.5 pips above entry).
TP1: $0.014350 (32.5 pips below entry).
Risk/Reward for TP1: 1:3.43
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