We learned about candlesticks ๐ฏ๏ธ, patterns ๐, and trends ๐
Now it's time to understand:
Technical Patterns
Not one or two candlesticks...
๐ A full shape on the chart tells the market's story ๐ก
๐ด First: Reversal Patterns (Trend Change)
1๏ธโฃ Double Top
Shape:
Price reaches the same peak twice
Meaning:
๐ Market failed to rise
๐ Sellers took control
๐ Potential drop
2๏ธโฃ Double Bottom
Shape:
Price hits the same bottom twice
Meaning:
๐ Market failed to drop
๐ Buyers have entered
๐ Potential rise
3๏ธโฃ Head & Shoulders
Shape:
Peak
Higher Peak (the Head)
Peak
Meaning:
๐ Weakness in rising
๐ Potential reversal to down โ
๐ข Secondly: Continuation Patterns (Trend Continuation)
๐ฉ 1๏ธโฃ Flag Pattern
๐ Bull Flag
Strong rise ๐
Then a slight drop (Correction)
๐ Break โ Then continuation upwards
๐ Bear Flag
Forms when the trend is downward
Strong drop โ
Then a slight rise
๐ Break โ Then continuation down
๐บ 2๏ธโฃ Triangle Pattern
๐ก The idea:
Price is tightening... the market is gearing up for a strong move
๐ Ascending Triangle
Fixed Peaks
Ascending bottoms
๐ Buying pressure
๐ Likely to break upwards ๐
๐ Descending Triangle
Descending peaks
Fixed bottoms
๐ Selling pressure
๐ Likely to break downwards
โ ๏ธ Most important rule
โ Don't enter before the breakout
๐ The pattern without a breakout = just a shape
๐ง How do you connect this with what you've learned?
Uptrend + Bull Flag โ Continuation ๐
Uptrend + Double Top โ Reversal โ
Triangle at the bottom โ Potential rise
Triangle at the peak โ Potential drop
๐ฃ Beginner mistakes
Sees any shape and calls it a pattern โ
Entering before the breakout โ
Ignoring the trend โ
Most important thing:
๐ Trend + Location + Breakout
๐ฅ In the next article:
We're going to dive into support and resistance
#ุฏุนู _ุตูุงุน_ุงูู ุญุชูู
