Common Patterns, Win Up to 80% ? Hello everyone, if you're struggling to identify price zones, entry points, or simply want to predict the trend of any currency pair, then this article is for you.
Continuing from the previous section, today we’ll cover some popular bearish reversal patterns. These patterns have been tested and trusted by many traders, and they can increase the probability of winning for any currency pair up to 80%. Let's get started:
First pattern: DOUBLE TOP
The double top pattern is a highly bearish pattern, formed after the price hits a high twice consecutively. Once support is confirmed to be broken, we can make a decision to sell.
Second pattern: DESCENDING TRIANGLE
The descending triangle is a bearish pattern characterized by a downward-sloping upper trendline and a flat lower trendline that acts as support. This pattern indicates that the sellers are more aggressive than the buyers, as the price continues to form lower highs. The pattern is complete when the price breaks out of the triangle in the direction of the prevailing trend.
3. HEAD AND SHOULDERS
This is a specific chart pattern that predicts a change from an uptrend to a downtrend. The pattern appears as a baseline with three peaks, where the two outer peaks are of nearly equal height, and the middle peak is the highest.
The head and shoulders pattern is considered one of the most reliable trend reversal patterns .
4. PRICE CHANNEL
The term "price channel" refers to a signal that appears on the chart when the price of a currency pair is bounded between two parallel lines. Price channel patterns are quite useful for identifying breakouts, which occur when the price moves beyond either the upper or lower trendline of the channel.
Traders can sell when the price approaches the upper trendline of the price channel and buy when the price tests the lower trendline.
5.TRIPLE TOP REVERSE
The Triple Top pattern typically signals a reversal from an uptrend to a downtrend.
Similar to the Double Top pattern, the Triple Top can occur on any timeframe, but for it to be considered a valid Triple Top, it must occur after an uptrend.
And those are some common bearish patterns. Remember to keep them in mind and apply them regularly. You’ll definitely succeed.
If you’ve understood all the patterns, don’t forget to like the post🚀. If you need any explanations about anything, feel free to leave a comment below. 👇
The next sections will definitely be even more exciting, so stay tuned for the upcoming guides.
Good luck!
