๐ Multiple Confirmation Breakdown Pattern
This chart highlights a classic bearish setup where multiple confirmations align before a strong downside move.
๐ Key Elements Explained:
1๏ธโฃ Buyerโs Trap
Price breaks above resistance, luring late buyers into long positions โ but fails to hold. Smart money uses this liquidity to sell.
2๏ธโฃ Trendline Breakdown
The ascending trendline that supported price is broken, signaling the loss of bullish structure.
3๏ธโฃ Neckline Test & Breakdown
After the trendline break, price retests the neckline (support turned resistance).
Once the neckline breaks, bearish momentum accelerates.
4๏ธโฃ Expansion Move (Sell-Off)
With structure broken and buyers trapped, price moves aggressively downward โ often with high volume and little pullback.
๐ง Key Lesson:
Never rely on one signal alone.
High-probability trades come from multiple confirmations:
Failed breakout
Trendline break
Support โ resistance flip
Clean neckline breakdown
This is how professionals avoid traps โ and how retail traders get caught when chasing breakouts without confirmation.
๐ Trade structure, not emotions.
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