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Double Top

#ID/USDT#ID The price is moving in a descending channel on the 1-hour frame and is adhering to it well and is heading to break it upwards strongly and retest it We have a bounce from the lower limit of the descending channel, this support is at a price of 0.3000 We have a downtrend on the RSI indicator that is about to break and retest, which supports the rise We have a trend to stabilize above the moving average 100 Entry price 0.3322 First target 0.3156 Second target 0.3237 Third target 0.3322
Long
by CryptoAnalystSignal
Chart Patterns That Keep Showing Up (Are Traders Predictable?)In the grand theater of financial markets, traders often fancy themselves as rational actors, making decisions based on cold, hard data. Yet, time and again, their collective behavior etches familiar patterns onto price charts, as if choreographed by an unseen hand (the Invisible Hand?) All across the world economy , markets trade in patterns. The trick is to spot those patterns before they unfold. These recurring formations, known as chart patterns, are a testament to the predictability of human psychology in trading. Let's rediscover some of these enduring patterns, exploring why they persist and how you can leverage them. 🚿 The Head and Shoulders: More Than a Shampoo Brand Imagine a market trend as a partygoer who's had one too many. Initially, they're lively (the left shoulder), then they reach peak status of euphoria (the head), but eventually, they slump with one last “let’s go party people” (the right shoulder). This sequence forms the Head and Shoulders pattern, signaling a trend reversal from bullish to bearish. Traders spot this pattern by identifying three peaks: a central, higher peak flanked by two lower, similar-sized peaks on each side. The neckline, drawn by connecting the lows between these peaks, becomes the critical support level. A break below this line suggests the party's over, and it's time to exit or short the trading instrument. Conversely, the Inverse Head and Shoulders indicates a reversal from bearish to bullish, resembling a person doing a headstand—a strong sign the market's ready to flip. Ready to hunt down the charts for some Head and Shoulders? Try out the Head and Shoulders drawing tool . ⛰️ Double Tops and Bottoms: Déjà Vu in Trading Ever experience déjà vu? The market does too, in the form of Double Tops and Bottoms. A Double Top resembles the letter "M," where the price hits a high, retreats, and then tests that high again before declining. It's the market's way of saying, "I've been here before, and I'm not going higher." The Double Bottom, shaped like a "W," occurs when the price drops to a low, rebounds, and then retests that low before rising. It's akin to the market finding a sturdy trampoline at support levels, ready to bounce back. These patterns reflect traders' reluctance to push prices beyond established highs or lows, leading to reversals. ⚠️ Triangles: The Market's Waiting Game When traders are indecisive, prices often consolidate, forming Triangle patterns. These come in three flavors: Ascending Triangle : Characterized by a flat upper resistance line and a rising lower support line. Buyers are gaining strength, repeatedly pushing prices up to a resistance level. A breakout above this resistance suggests bullish momentum. Descending Triangle : Features a flat lower support line and a descending upper resistance line. Sellers are in control, and a break below support signals bearish continuation. Symmetrical Triangle : Both support and resistance lines converge, indicating a standoff between buyers and sellers. The eventual breakout can go either way, and traders watch closely for directional cues. Triangles epitomize the market's pause before a storm, as participants gather conviction for the next move. Feel like looking for some triangles on charts? Jump straight to our easy-to-use Triangle Pattern drawing tool . 🏁 Flags and Pennants: The Market Takes a Breather After a strong price movement, the market often needs a breather, leading to Flags and Pennants. These are short-term continuation patterns that indicate a brief consolidation before the trend resumes. Flag : Resembles a parallelogram sloping against the prevailing trend. It's like the market catching its breath before sprinting again. Pennant : Looks like a small symmetrical triangle that forms after a sharp move. Think of it as the market pitching a tent before continuing its journey. Recognizing these patterns helps traders position themselves for the next leg of the trend. 🧠 The Psychology Behind Pattern Persistence Why do these patterns keep appearing? The answer lies in human psychology. Traders, despite access to vast information, are influenced by emotions like fear and greed. This collective sentiment manifests in predictable ways, creating patterns on charts. For instance, the Head and Shoulders pattern emerges because traders, after pushing prices to a peak, become cautious. Early sellers take profits, causing a dip. A second rally (the head) attracts more participants, but if it fails to sustain, confidence wanes, leading to a sell-off. The final attempt (right shoulder) lacks conviction, and once support breaks, the downtrend ensues. Understanding the emotional drivers behind these patterns allows traders to anticipate moves and strategize accordingly. 🎯 Using Patterns to Your Advantage While recognizing patterns is valuable, it's crucial to approach them with a discerning eye: Confirmation is Key : Don't act on a pattern until it's confirmed. For example, in a Head and Shoulders, wait for a break below the neckline before taking a position. Volume Matters : Volume often validates a pattern. A genuine breakout is usually accompanied by increased trading volume, indicating strong participation. Contextual Awareness : Consider the broader market context. Patterns can yield false signals in volatile or news-driven environments. Risk Management : Always set stop-loss orders to protect against unexpected moves. Patterns suggest probabilities, not certainties. 🧬 The Evolution of Patterns in Modern Markets In today's algorithm-driven trading landscape, one might wonder if traditional chart patterns still hold relevance. Interestingly, even sophisticated trading algorithms (those used by hedge funds and investment managers) are programmed based on historical patterns and human behavior, perpetuating the cycle. Moreover, as long as markets are driven by human participants, emotions will influence decisions, and patterns will emerge. The tools may evolve, but the underlying psychology remains constant. 🤗 Conclusion: Embrace the Predictability In the volatile world of trading, chart patterns serve as a bridge between market psychology and price action. They offer insights into collective behavior, providing traders with a framework to anticipate movements. By studying these recurring formations, traders can align their strategies with market sentiment, turning the predictability of human nature into a trading edge. What’s your go-to technical analysis pattern? Are you and H&S trader or maybe you prefer to trade double tops? Share your approach in the comments!
Education
by TradingView
16
BTC Potential Drop to $72K: 3 Signs Indicating a Trend BreatherBitcoin has been on an incredible run, but I believe we may be heading for a pullback toward $72K. There are three key signs that suggest a breather is due: Double Top Formation – We've seen a clear double top pattern forming, signaling a potential reversal. RSI Divergence – The RSI is showing divergence from price action, often a sign that the momentum is weakening. Overbought Conditions – Bitcoin has been in overbought territory for a while now, suggesting that a correction could be on the horizon. Keep an eye on these factors as they could play a big role in where BTC goes next. Stay cautious and be prepared for potential volatility. I hope you find it helpful! Take care and keep it shiny. Kina ♥
Long
by KinaStar
NVDA Topping PatternUnlike the previous call, I made in NVDA that was corrective. This double-top pattern is signaling a reversal pattern. From a trading perspective, this is a great risk/reward setup that is relatively simple. A CRACK! here will likely lead to at least the right side filling, with the potential deeper pullback (reversal) If on the other hand, it pops above recent highs then no trade or an easy stop out. As you all know I don't do targets, I think they are silly and only used to pretend one has such insight not only can they call the move but also a "target" too. Yeah well, I'll leave that to the "experts" ;) Bulls don't be a dick for tick. Shorts take some early profits to improve cost basis but let this one ride!
NASDAQ:NVDAShort
by RealMacro
6
A Lot is Happening on Gold!While the price of Gold (XAU/USD) has been rangebound since December 2024, a possible AB=CD harmonic support zone at US$2,471 continues to call for attention. A 61.8% Fibonacci retracement ratio also complements this support at US$2,473. Investors will also likely take note of the double-top pattern around the December 2024 peak of US$2,726. The pattern’s neckline at US$2,605 has been breached, and its profit objective conveniently resides just above the AB=CD support at US$2,483. So, two patterns indicate that a push lower could materialise before buyers attempt to step in. However, given Gold’s clear uptrend, a bullish move above the December 2024 peak also remains possible.
FPMARKETS:XAUUSD
by FPMarkets
NVDA - A 90% Short fall to the centerline ($100-$104) or lowerDouble top, failed breakout of the high—call it what you will. Fact is, NVIDIA has taken a brutal hit and is now trading back inside the fork. Hagopian—what on earth is a HAGOPIAN? According to the Fork Framework rulebook, if the market fails to reach its next target (the next line, such as the centerline, lower median line parallel, etc.), it reverses and moves further back than where it started. This is (not so exactly) what happened in December. Instead of reaching the centerline, the market turned, shot beyond the upper median line parallel (U-MLH), and was supposed to break above the November 21st high. It missed that target as well. And this, my friends, is....? ...again, a HAGOPIAN! Now, it’s heading south again. But this time, we have an over 90% probability of reaching the centerline. Why? Because when the market breaks above the U-MLH and then falls back into the fork, it’s a very bearish signal. Of course, nothing works 100%. The market could turn around today and push past the high. But statistically, we’re aiming for the centerline—and there’s an over 90% chance we’ll hit it. When will it happen? Sorry, my crystal ball is broken. All I do is follow the Fork/Median Line rulebook and rely on my experience. As for me, I’m opening a short position in NVIDIA today and may add to it on the way down to the centerline. And I play this game with Options, so no hard price level stop for me.
NASDAQ:NVDAShort
by Tr8dingN3rd
Nvidia Stock Double Top Nvidia 📉 **Double Top Pattern in Technical Analysis** 📉 A **Double Top** is a bearish reversal pattern that signals a potential trend change from upward to downward. It forms after a strong uptrend and consists of two peaks at roughly the same price level, with a valley (or trough) in between. 🔍 **Key Characteristics**: 1. **First peak** – Price hits a high point and retraces. 2. **Second peak** – Price rises again but fails to surpass the first peak. 3. **Neckline break** – A drop below the trough confirms the pattern, signaling a potential downtrend. 🚨 **What it means**: When the price breaks below the neckline (the support level), traders may look for a sell signal, as the pattern suggests weakness and a possible reversal of the current uptrend. #TechnicalAnalysis #DoubleTop #ChartPatterns #StockMarket #TrendReversal #TradingTips
NASDAQ:NVDALong
by AlgoTradeAlert
SPY Double Top Triple Top?Possible Double or Triple Top on AMEX:SPY ? The SPY has been hitting the same resistance level of 600.80 for the past two days. First, on November 24, 2024, and again on November 25, 2024, before pulling back. This repeated testing of the same level raises the question: are we forming a double or triple top? Will the SPY fail to break through this level, or will it finally push past it? Only time will tell, but we should be aware of this potential technical pattern. Double Top Two consecutive peaks: Two highs occur near the same price level, with a moderate decline between them. Valley in between: A noticeable low forms between the two peaks, which serves as a support level. Neckline: A line connecting the valley lows forms the neckline. Breakdown: The price breaks below the neckline, confirming the Double Top pattern. Volume: Decreasing volume on the second peak and increasing volume on the breakdown.
AMEX:SPY
by Paul_Hodls
XAUUSD Bearish Reversal: Double Top and Golden Pocket Breakdown!OANDA:XAUUSD - 2Hr The analysis suggests the market is showing bearish signals, particularly after price rejected at key resistance zones during the Asian session. The Ascending Channel indicates an upward trend, but the breakdown from the channel signals that bullish momentum is weakening. Key Elements Driving the Short Trade: 1. Golden Pocket (0.5–0.618 Fib): The price has reached the Golden Pocket (between 0.5 and 0.618 Fibonacci levels), a strong reversal zone. Rejections in this zone often signal a potential change in trend, especially when combined with other bearish signals. 2. MML Major Resistance: The MML Major Resistance suggests that the market is encountering a significant obstacle, further validating the potential for a reversal. 3. Strong Resistance: The price is facing Strong Resistance at higher levels, which is causing the price to struggle and reject, confirming the reversal bias. 4. Double Top: The Double Top pattern at the Golden Pocket indicates that the price has attempted to break higher twice but failed, signaling weakness and a likely bearish shift. This pattern often leads to a trend reversal. 5. Price Gap: A Price Gap further confirms a shift in market sentiment, with a possible imbalance or sudden price movement that reinforces the bearish view. Current Price Action: During the Asian session, price broke down from the Ascending Channel, signaling a shift from an uptrend to a potential downtrend. The breakdown occurred near Equilibrium and the 50% Fib retracement, reinforcing the idea of a reversal as this is where price typically finds resistance in a trend. The Double Top at the Golden Pocket suggests a strong potential for a downward move as the price has failed to continue higher. Currently, the price is above a Strong Pivot Point, which is acting as support, potentially leading to a short-term pullback or consolidation before the bearish move continues. Interpretation: The combination of the Golden Pocket, Double Top, and rejection at key resistance levels gives a strong bearish signal. The ideal entry point would be after confirmation of price breaking below the Strong Pivot Point or failing to sustain above it, with a target near the next support or at Price Gap, as mentioned Price target. Place the stop loss just above the Double Top or near the Strong Resistance zone to limit risk in case the market reverses back up. In conclusion, the market is showing signs of a bearish reversal after rejection at multiple key levels, and the analysis points toward potential short opportunities with proper risk management. "Stick to Your Plan and Manage Risk, Happy Trading!"
OANDA:XAUUSDShort
by SpicyPips
A Crypto on a journey from bigger Time-F's & Big move-up I have been following HBARUSD for a bit over a week. I was wondering why it was getting huge volumes lately. Hidden away on higher time frames 'monthly' & 'weekly' charts reveals the reasons volume and buying is on increase. Price breaking out of a triangle on Monthly chart very, very recently and price moving back to retest this breakout and give buyers another opportunity at the better price. Weekly chart is a Top 2 and price snapping back to retest the Top of this system. A good trade with a longer term view, or cash in on the short term with its volatility supportive of long prices.
EIGHTCAP:HBARUSDLong
by Easy_Explosive_Trading
Bullish Double Bottom Pattern Tutorial: 4/8 Bullish PatternsGive me the description for a bullish double-bottom A bullish double bottom is a powerful reversal chart pattern that signals the potential end of a downtrend and the beginning of an upward trend. Here’s how it forms: Two Troughs: The pattern starts with a significant price decline, forming a low (the first bottom). The price then rebounds to create a peak (the middle of the "W" shape) but soon declines again to form a second bottom roughly at the same price level as the first bottom. This double bottom resembles the letter "W." Neckline: The horizontal line that connects the peak of the middle rebound is called the neckline. This is a key resistance level that the price needs to break through to confirm the pattern. Breakout: A breakout above the neckline, typically accompanied by increased volume, confirms the double bottom pattern and signals a potential trend reversal from bearish to bullish. Price Target: The estimated price target for the upward move is usually determined by measuring the distance from the bottoms to the neckline and projecting this distance upwards from the point of breakout. Traders view the double bottom as a strong indication that the previous downtrend has exhausted and the bulls are gaining control, leading to a potential significant upward movement.
NYSE:SMREducation
by RonnieV29
2