Many platforms/social media were inundated with the “double top” posts in the last week or so by gurus/professionals. As soon as I saw it I warned my followers both on TV and in my public channel not to consider it as a double top . Why? Because a Double top is NOT confirmed until the neckline is broken. Why does the neckline have to be broken? Because that’s when the first lower low is created (sign of weakness) and when the support becomes resistance.
As you can see, many were telling others to short the “double top” with their stop losses set right above the “double top”. All these stop losses were piling up at the exact price levels fuelling the breakout. In addition, as I have mentioned previously, the bullish trend is still intact – the lows keep grinding higher and the rising trendline has not yet been broken. These, are the reasons why an ascending triangle is typically a bullish continuation pattern. The price actions of Bitcoin also suggested that it’s less likely to be a symmetrical triangle like some have suggested as the horizontal resistance around $8200 was apparent.
It’s more than silly to short Bitcoin when neither the rising trendline or the lows is compromised. People who often lose money because they flip flop all the time, one moment they are buying and a second after they are selling. In other words, they are trying to predict every market movement when it isn’t the key to profits in trading. Of course, it’s another story if you are a scalper but most of the traders here are not.
A piece of advice from me from this post is you must fully understand the reasoning and price actions behind a pattern instead of trading just the pattern itself. The pattern/price actions need to be put into contexts. As well, you should fully understand the fundamentals of TA before you start talking about all the Elliott Waves , NVT , RSI , TD sequential, MACD etc, otherwise it’s like learning how to solve an algebra equation before knowing how to do additions and multiplications.
If you’d like to know how to trade a reliable double top setup, you can refer to my previous 2618 trade on Bitcoin below:
As you can see, many were telling others to short the “double top” with their stop losses set right above the “double top”. All these stop losses were piling up at the exact price levels fuelling the breakout. In addition, as I have mentioned previously, the bullish trend is still intact – the lows keep grinding higher and the rising trendline has not yet been broken. These, are the reasons why an ascending triangle is typically a bullish continuation pattern. The price actions of Bitcoin also suggested that it’s less likely to be a symmetrical triangle like some have suggested as the horizontal resistance around $8200 was apparent.
It’s more than silly to short Bitcoin when neither the rising trendline or the lows is compromised. People who often lose money because they flip flop all the time, one moment they are buying and a second after they are selling. In other words, they are trying to predict every market movement when it isn’t the key to profits in trading. Of course, it’s another story if you are a scalper but most of the traders here are not.
A piece of advice from me from this post is you must fully understand the reasoning and price actions behind a pattern instead of trading just the pattern itself. The pattern/price actions need to be put into contexts. As well, you should fully understand the fundamentals of TA before you start talking about all the Elliott Waves , NVT , RSI , TD sequential, MACD etc, otherwise it’s like learning how to solve an algebra equation before knowing how to do additions and multiplications.
If you’d like to know how to trade a reliable double top setup, you can refer to my previous 2618 trade on Bitcoin below:
