The following are the five commonly used technical forms in the currency circle and their detailed descriptions:
Head and shoulders bottom pattern: This is a typical trend reversal pattern that usually appears at the end of a downtrend. It consists of left shoulder, bottom, right shoulder and neckline. In the head and shoulders bottom pattern, the price first falls sharply and then rebounds, forming the first trough (left shoulder). Then the rebound encountered resistance and fell back again, falling below the previous low, and then stopped falling and rebounded again to form a second trough (bottom). Then, the price rebound encountered resistance from the first rebound high and fell again. However, when it fell to near the first low, the price rebounded again, forming the third trough (right shoulder). In this process, trading volume usually amplifies significantly during the rise of the right shoulder. When the price breaks through the neckline strongly, the head and shoulders bottom pattern is completed, signaling a market reversal.
Double bottom (W bottom) pattern: This is a more common bottom reversal pattern, consisting of two relatively low troughs and a higher point, with a shape similar to the English letter "W". In a double bottom pattern, the price rebounds after the first low, but the rebound is not strong enough and falls again to a level similar to the first low. The price then rebounds again and breaks above the previous rebound high, forming a double bottom pattern. The appearance of this pattern usually heralds a market reversal.
Triangle pattern: Triangle patterns can be divided into ascending triangle, descending triangle and symmetrical triangle. In an ascending triangle, as the price continues to rise, the highs gradually move up, while the lows gradually move up and become horizontal. In a descending triangle, as the price continues to fall, the lows gradually move downwards, while the highs gradually move downwards and become horizontal. The symmetrical triangle is somewhere in between, with the highs and lows gradually converging. The appearance of a triangle pattern usually means a market breakout is about to occur. #热门话题 #WLD #BTC #ETH #技术分析
