THE INVERTED ROOF CHART PATTERN
Price begins the climb into the inverted roof and overshoots the top of the pattern (which happens about 15% of the time). The breakout from the inverted roof is downward reaching its target 73% of the time.
Price trend can be any direction leading to the pattern.
Shape has a horizontal or near horizontal top with a V-shaped bottom, making the entire structure look like the bottom half of a diamond.
The best performing inverted roof chart patterns appear after a sharp rise like you sometimes see in diamond top chart patterns.
The two halves of the inverted roof chart pattern should appear symmetrical. Allow variations, but most look like a V with price touching the horizontal top often, also make sure the pattern isn't a head-and-shoulders bottom or a complex head-and-shoulders bottom.
NOTE:
The pattern confirms as valid when price closes outside the chart pattern trendline boundary. Open a short position only when price breakout to the downside and closes below it.
Possible targets are as follows: $7951.93 down to $7645.11
Risk Disclaimer:
Trading cryptocurrency on margin carries a high level of risk(volatile), and may not be suitable for all trades who are yet to understand how to use STOP LOSS. The high degree of leverage can work against you as well as for you.
It is your responsibility to confirm if you want to take this trade or not. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.
If you do not fully understand these risks you must seek independent advice from your financial advisor.
Price begins the climb into the inverted roof and overshoots the top of the pattern (which happens about 15% of the time). The breakout from the inverted roof is downward reaching its target 73% of the time.
Price trend can be any direction leading to the pattern.
Shape has a horizontal or near horizontal top with a V-shaped bottom, making the entire structure look like the bottom half of a diamond.
The best performing inverted roof chart patterns appear after a sharp rise like you sometimes see in diamond top chart patterns.
The two halves of the inverted roof chart pattern should appear symmetrical. Allow variations, but most look like a V with price touching the horizontal top often, also make sure the pattern isn't a head-and-shoulders bottom or a complex head-and-shoulders bottom.
NOTE:
The pattern confirms as valid when price closes outside the chart pattern trendline boundary. Open a short position only when price breakout to the downside and closes below it.
Possible targets are as follows: $7951.93 down to $7645.11
Risk Disclaimer:
Trading cryptocurrency on margin carries a high level of risk(volatile), and may not be suitable for all trades who are yet to understand how to use STOP LOSS. The high degree of leverage can work against you as well as for you.
It is your responsibility to confirm if you want to take this trade or not. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.
If you do not fully understand these risks you must seek independent advice from your financial advisor.