No matter where you are in your trading journey—beginner or expert—this guide will help refine your strategy. Let’s break it down step by step:
1️⃣ Head and Shoulders 🧠
What it shows: Signals a trend reversal from bullish to bearish.
How to identify: Look for three peaks—the middle (head) is the tallest, with two shorter ones (shoulders). Watch for a neckline break.
Best strategy: Wait for a neckline breakdown to confirm the reversal.
Pro Tip: Use volume analysis—a breakdown with increased selling pressure is more reliable.
2️⃣ Double Top 📉
What it shows: A bearish reversal at the end of an uptrend.
How to identify: Price hits resistance twice, forming two peaks, then drops.
Best strategy: Enter a short trade after the support line breaks.
Pro Tip: Confirm the setup with RSI showing overbought conditions.
3️⃣ Double Bottom 📈
What it shows: A bullish reversal at the end of a downtrend.
How to identify: Price tests support twice, creating two valleys, then moves up.
Best strategy: Go long after the resistance level is
broken.
Pro Tip: Combine this with MACD divergence for stronger confirmation.$BNB