volume. StockSharp

Basic technical analysis for trading.

2022-10-26T16:47:43Z

👩‍🎓 🧑‍🎓 "Technical analysis" is a method of studying stock behavior by analyzing charts to forecast future price trends. Technical analysts examine stock behavior based on price and trading volume (or trading value), considering them as important sources of information for technical analysis.

💥However, the strategies used in technical analysis are not formulated without principles. In fact, they are based on three concepts or beliefs:

1. Price Behavior Reflects All Information: According to this concept, the price of a stock reflects all relevant information. Economic, political, and other changes that impact supply and demand in the stock market will affect the price. Since the price is determined by the interaction of supply and demand, positive changes lead to increased demand surpassing supply (greater buying pressure than selling pressure), resulting in price increases. Conversely, negative changes lead to increased supply surpassing demand (greater selling pressure than buying pressure), leading to price declines.

👩‍🎓 🧑‍🎓 However, technical analysts primarily focus on price and volume data for analysis. This approach narrows the scope of study compared to fundamental analysis, which delves into the causes behind price changes. While analyzing fundamentals, the driving forces behind changes in supply and demand are thoroughly examined. Both approaches aim to solve the problem of determining the direction of stock prices, although they differ in their analytical models.

2. Price Trends Continue Until Reversal: This concept suggests that a price trend will persist until there is a confirmed reversal. The preceding explanation provides a complete understanding of this concept. For instance, if you throw a ping-pong ball into the air (where the ping-pong ball represents a stock price), you can observe that the ball will continue moving upward, following the initial direction of the throw. However, over time, the momentum gradually weakens, and the ball starts to slow down due to various reasons. Eventually, the upward momentum exhausts, and the ping-pong ball starts to fall. Therefore, the movement of the ping-pong ball, from the throw until just before it starts to fall, represents an upward trend. After the end of the upward trend, the direction changes to a downtrend when the ball begins to fall.

💥It is important to note that technical analysis and fundamental analysis ultimately aim to determine the direction of stock prices, although they employ different analytical approaches. Technical analysis focuses on price and volume data, while fundamental analysis delves into the underlying causes of price movements. By understanding and utilizing these concepts, technical analysts attempt to make informed predictions about future price trends.

3. Patterns or behaviors observed in the past can be applied in the present and future, reflecting the concept of "history repeats itself." Technical analysis relies on price and volume, which capture the overall effect of available data (information set) for forecasting. Price and volume data serve as indicators of market psychology, such as courage or fear, which remain consistent across different eras. Therefore, patterns that occurred in the past, reflecting the psychology of that time, can still be relevant today. They provide insights and probabilities for the future direction of stock movements.

👩‍🎓 🧑‍🎓 All three concepts mentioned above are fundamental beliefs and form the basis of technical analysis. It is important to understand that these principles are based on underlying ideas. The chart itself is not the cause of stock price fluctuations; it is merely a visual representation. However, through the study of technical analysis, you gain tools to analyze and interpret what the stock price is indicating. It helps you understand the potential direction of price movement and identifies opportunities for trend changes.

Reversal Patterns ( Double Tops & Double Bottoms )

2022-11-08T10:13:49Z

💥A double top is a technical chart pattern that occurs when the price of an asset reaches a high point, experiences a temporary decline, and then rallies back to approximately the same high point before reversing its upward trend. The pattern is characterized by two prominent peaks (top 1 and top 2) that are relatively close in price levels, with a trough (bottom point 1) between them.

💥The pattern suggests a potential reversal in the upward trend and indicates that there is significant selling pressure near the previous high point (top 1). As the price reaches top 1, selling pressure emerges, causing the price to decline. However, buyers step in at the bottom point 1, creating a temporary rebound.

💥When the price attempts to move upward again and reaches top 2, it encounters resistance at or near the previous high (top 1). The level at top 1 acts as a resistance level, where selling pressure becomes strong enough to prevent the price from breaking through and continuing its upward movement. This resistance level often indicates that traders who missed selling at the previous high (top 1) are now selling at the current level (top 2).

💥Due to the resistance at top 1, the price fails to surpass it, leading to a subsequent adjustment or reversal. This time, the price may not rebound at the previous support level (uptrend line) as there is more selling pressure than buying pressure. Consequently, the price falls through the uptrend line, confirming the double top pattern and signaling a potential downtrend.

💥Traders and analysts pay attention to double tops as they can provide insights into market sentiment and potential trend reversals. It's important to note that technical patterns like double tops are not foolproof indicators, and other factors should be considered in conjunction with these patterns to make informed trading decisions.

💥As traders become aware of the double top pattern and its potential for a trend reversal, they start to take action by selling their positions. This selling pressure results in a significant drain of trading volume. If the baseline (also referred to as the neckline, whichever is more convenient or easier to remember) is unable to withstand the selling pressure, it gives way, leading to another round of selling.

💥It is expected that the price will experience a rebound from the baseline, which will be positioned below the baseline at a distance approximately equal to or close to the measurement from the double tops down to the baseline (as shown in the figure). Traders who speculate on the price movement may consider re-entering the market during this time, as they anticipate a potential rebound from the baseline. They are prepared to sell their positions near the baseline because, based on the picture, it can be observed that the price has dropped again below a point on the neckline.

💥It's important to note that double tops are a pattern that typically occurs during an uptrend to signal a potential shift towards a downtrend. Traders should keep this in mind when analyzing the pattern and considering their trading strategies.

💥💥Remember, while double tops can provide valuable insights, they should be used in conjunction with other technical indicators and analysis tools to make well-informed trading decisions.

💥A double bottom is essentially the inverted version of a double top pattern. Looking at the picture of double bottoms, we can observe that it signifies a reversal of the former downtrend. Once the double bottoms are formed, the subsequent trend that follows is an uptrend (in contrast to the double tops pattern).

💥To identify a double bottom pattern, we can note the following characteristics: The price initially declines, forming a low point (bottom 1). It then rebounds, but fails to break the downtrend line. Subsequently, the price moves down again, creating another low point (bottom 2), which is approximately at the same level or close to the previous low. Finally, the price rebounds again and surpasses the downtrend line, indicating a potential shift towards an uptrend.

💥Traders can recognize a double bottom pattern by observing the formation of two bases at the bottom (bottom 1 and bottom 2) and the subsequent breakout above the downtrend line. This pattern suggests that the price has reached a support level twice and is now poised to move in an upward direction.

💥💥It's important to remember that double bottoms typically occur during a downtrend, and the pattern indicates a potential reversal towards an uptrend. However, as with any technical pattern, it is crucial to consider additional factors and use supporting analysis to confirm and complement the trading decision.

💥Overall, the double bottoms pattern provides traders with insights into potential trend reversals and can help guide their trading strategies.

Let's get to know Runaway Gap and see what signals this gap gives traders

2022-11-26T10:18:37Z

💥A runaway gap, also known as a measuring gap or continuation gap, is a type of gap that occurs in the middle of a trend. It is usually seen as a signal that the current trend is likely to continue, as opposed to a reversal.

💥A runaway gap occurs when the price moves rapidly in the direction of the trend and leaves a gap in the price chart. The gap represents a period of strong momentum and can be seen as a sign of investor enthusiasm. Runaway gaps can be formed during an uptrend or a downtrend and can occur in any market, including stocks, commodities, and forex.

💥Traders often use runaway gaps as a signal of a continuation of the trend, and may use it as an opportunity to enter or add to a position in the direction of the trend. For example, in an uptrend, a trader may look for a runaway gap as an indication of a strong upward momentum and may buy the stock to take advantage of the potential upside.

💥It's important to note that like all technical indicators, runaway gaps are not always reliable and can be subject to false signals. It's essential to use other technical indicators and analysis to confirm trading decisions and avoid false breakouts. Additionally, managing risk and setting stop-loss orders can help limit potential losses in case the trade goes against the expected trend.

💥The definition of a runaway gap helps technical analysts remember that "how much it has come, it will double further." This is because a runaway gap occurs in the middle of a trend. For example, if the price has moved up from €100 (after a breakaway gap) and continued up to a second gap (runaway gap) around €150, it can be predicted that the price target or resistance will be around €50 after the runaway gap or around €200, as the runaway gap is used as a measuring tool for distance in the trend.

💥In a runaway gap situation, it is said that only normal volume can easily move the market. In an uptrend, this means that the market can continue to move up after the gap. However, in a downtrend, the market will undoubtedly go down.

💥Like a breakaway gap, a runaway gap can also act as support and resistance, but it should be noted that if it is a real signal, the gap should not be closed. This means that the price should not move down to close the gap in the coming days in an uptrend. When the gap is closed, it could signal a reversal, causing traders to sell instead of buy.

How importance of breakaway gaps and using breakaway gaps as support and resistance in trading?

2022-11-25T11:44:58Z

💥Breakaway gaps are significant in technical analysis because they are usually formed at the start of a new trend, indicating a significant shift in market sentiment. They occur when the price breaks through a support or resistance level, creating a gap between the previous day's trading range and the current day's trading range. Breakaway gaps can be seen as a strong signal of a new trend and can be used by traders as a confirmation of a new trading opportunity.

💥In trading, breakaway gaps can also be used as support and resistance levels. If a breakaway gap is formed during an uptrend, the price may find support at the bottom of the gap, which can be used as a buying opportunity. Conversely, if a breakaway gap is formed during a downtrend, the top of the gap may act as a resistance level, which can be used as a selling opportunity.

💥However, it's important to note that breakaway gaps are not always reliable indicators, and they can also be filled or closed later on. Traders should use other technical indicators and analysis to confirm trading decisions and avoid false breakouts. Additionally, it's important to manage risk and set stop-loss orders to limit potential losses.

💥A breakaway gap usually occurs after the price formation has been completed and is often the starting point of a significant move. For example, the price may move down to test the neckline after forming a head and shoulders pattern or, in the case of a breakdown of the major uptrend line, this type of gap is also called a breakaway gap, which marks the beginning of a significant decline.

💥However, it's worth noting that traders should consider whether such a gap is significant or a fake signal. Using volume can help determine if it's a real signal, as a real breakaway gap is usually accompanied by high volume. Additionally, to confirm a real breakaway gap, the price action should not be able to close the gap, as a reversal in price movement could indicate a fake signal.

💥In addition to the above, some traders may wonder if breakaway gaps can serve as support and resistance levels. The answer is yes, as a breakaway gap during an uptrend will act as support, while in a downtrend, it will act as resistance if the market rebounds.

Continuous Patterns (Wedge)

2022-11-19T13:35:00Z

💥A wedge is a chart pattern that signals a potential trend reversal or continuation. It can be either a rising wedge or a falling wedge.

💥A rising wedge is formed when the price consolidates between two converging trend lines, with the lower trend line steeper than the upper trend line. This pattern typically signals a potential trend reversal from an uptrend to a downtrend. Traders may look for a breakout below the lower trend line as a signal to enter a short position.

💥A falling wedge is formed when the price consolidates between two converging trend lines, with the upper trend line steeper than the lower trend line. This pattern typically signals a potential trend reversal from a downtrend to an uptrend. Traders may look for a breakout above the upper trend line as a signal to enter a long position.

💥💥It's important to note that wedge patterns are not always reliable and can sometimes be false signals. As with other chart patterns, traders should use other technical indicators and analysis to confirm their trading decisions.

💥The wedge pattern (shown above) is similar to pennants at first glance, but it differs in that the formation of the wedge takes longer than that of pennants. During the formation of a falling wedge, a new low will be formed below the previous low, for example, 3 is below 2 and 2 is below 1. On the other hand, during the formation of a rising wedge during an uptrend, a new high will be formed, and the new high will be higher than the previous high, for example, 3 is higher than 2 and 2 is higher than 1.

💥However, wedge patterns are not always reliable and can sometimes be false signals. For example, a breakout from a wedge pattern may result in a brief and insignificant price move, or it may be a fakeout that does not signal a trend reversal or continuation. Therefore, traders should use other technical indicators and analysis to confirm their trading decisions.

💥From the real-life example charts shown above, it can be observed that after the formation of a wedge pattern, the price and volume movements still follow the original trend, and the trend can be maintained or even accelerated. For instance, in an uptrend before the formation of a rising wedge, the price still continues to move upwards after the wedge is formed.

Continuous Patterns (Flags and Pennants)

2022-11-18T09:46:17Z

💥Flags and Pennants are two chart patterns that can occur during a trend, typically after a significant price movement. They are classified as continuation patterns as they suggest that the previous trend is likely to continue after a brief consolidation.

💥Flags are characterized by a rectangular shape that is formed between two parallel trend lines. The trend lines are drawn to connect the highs and lows of the price movement, creating a flagpole and a flag. The flagpole is the initial price movement, while the flag is the consolidation period that follows. The price tends to break out of the flag in the direction of the previous trend, and traders can use this breakout as a signal to enter or exit a trade.

💥Pennants are similar to flags, but they have a triangular shape that is formed by converging trend lines. The trend lines are drawn to connect the highs and lows of the price movement, creating a pennant pole and a pennant. The pennant pole is the initial price movement, while the pennant is the consolidation period that follows. The price tends to break out of the pennant in the direction of the previous trend, and traders can use this breakout as a signal to enter or exit a trade.

💥💥It's important to note that while chart patterns can be useful in identifying potential trading opportunities, they are not foolproof and should be used in conjunction with other technical indicators and analysis to make informed trading decisions. Additionally, false breakouts can occur, and traders should use stop-loss orders to limit their losses in case the breakout fails.

💥Let me explain the characteristics of flags and pennants. Flags can be thought of as a rectangular flag that is fluttering, while pennants are like a fluttering flag, but in a triangular shape.

💥As shown in the figure above, flags and pennants are a correction of the original trend. For instance, if the original trend is an uptrend, when flags or pennants are formed, the price weakens in a retracement manner before continuing to move in the direction of the uptrend. The movement of the volume traded usually follows the same trend as the price movements. When the volume is rising, the number of volumes also increases, while the number of volumes decreases when the volume is resting. Moreover, the time it takes for flags and pennants to form is usually no more than three weeks.

The example pictures below show flags formed during a big trend and another figure that shows the emergence of patterns, which can occur at any time. From the examples, you can see that the price movement before and after the flag is still in the same direction. That is, if the trend is an uptrend, the price still moves upward, and if it is a downtrend, the price still moves downward.

Continuous Patterns (Descending Triangle)

2022-11-15T15:28:03Z

💥A descending triangle is a chart pattern in technical analysis that is formed when the price of an asset moves within a converging range, with a downward-sloping trend line at the top and a horizontal support line at the bottom. This pattern is a bearish continuation pattern, which means that it is likely to result in the continuation of an existing downtrend once the pattern is broken.

💥To identify a descending triangle pattern, traders look for a horizontal support line and a downward-sloping trend line that connects at least two highs. The support line should be roughly flat, while the trend line should slope downwards. These lines should converge towards a point.

💥Traders often look for a breakout below the support line to confirm the pattern, as this indicates that sellers have gained enough momentum to push the price below the support level. They may also use other technical indicators and analysis to confirm the direction of the breakout and determine potential entry and exit points for trades.

💥Once the price breaks out of the descending triangle pattern, it is likely to continue moving downwards, with a potential price target equal to the height of the pattern subtracted from the breakout point. However, if the price fails to break out and instead rises above the downward-sloping trend line, the pattern is considered to be invalidated.

💥Descending Triangle (see picture) is similar to triple bottoms, but the difference is that new tops are present during the formation of the pattern. For example, top 3 is below top 2 and top 2 is below top 1. This pattern is a correction before continuing to decline following the pattern of a downtrend.

💥In the example shown in the picture, past volume price movements have formed a descending triangle, including finding targets. When the price reaches the target level, the stock price has a noticeable rebound. During the formation of the pattern, there was a time when the support line flattened, which can be seen as a downtrend during that period. However, the volume price returned to the range of the pattern once again before falling off. The support level is somewhat more complete.

💥If the rules of Fibonacci numbers are applied, it can be seen that the weakening of the volume price comes down to test the flat support line, which is about two-thirds of the way from the base to the top. It will be even more possible that the volume price at that time dropped really come down!

Continuous Patterns ( Symmetric triangle )

2022-11-13T13:39:04Z

💥A symmetric triangle is a type of continuous pattern in technical analysis that occurs when the price of an asset moves within a converging range, forming two trend lines that meet at a point. This pattern indicates a period of consolidation in the market, where neither buyers nor sellers have enough momentum to push the price in a definitive direction.

💥Symmetric triangles are considered a continuation pattern, which means that they are likely to result in a continuation of the previous trend once the pattern is broken. If the trend was bullish, the price is likely to continue moving upwards after breaking out of the triangle. If the trend was bearish, the price is likely to continue moving downwards after breaking out of the triangle.

💥To identify a symmetric triangle pattern, traders look for two trend lines that connect at least two highs and two lows. The upper trend line connects the highs, while the lower trend line connects the lows. These lines should be roughly parallel to each other and converge towards a point.

💥Traders often look for a breakout above the upper trend line or below the lower trend line to confirm a continuation of the previous trend. They may also use other technical indicators and analysis to confirm the direction of the breakout and determine potential entry and exit points for trades.

💥If you look at the image above, you can see that the original price trend was an uptrend. However, at point 1 (green line), the price dropped down to point 1 (red line), providing an opportunity for buyers to enter the market and causing the price to rebound back up to point 2 (green line). But selling pressure pushed it down again to point 2 (red line), forming a triangular pattern. It's called a symmetric triangle because the trend line passes through the apex point (green line) and the trend drawn through the bottom of the pattern (red line) forms equal angles with the plane. The point where the green and red lines meet is called the apex. When the price breaks through the triangle, the trend is likely to continue in an uptrend, and the break usually occurs two-thirds of the way from the apex to the base. However, if it breaks past that point, the probability of a break up or break down becomes equal, and it may cause a reversal.

💥After a break up, it can be analyzed that the price may continue to go up to a distance equal to the base of the triangle or from the apex point up to the same distance. Another popular method is to draw a line parallel to the red line from point 1 (green line), which can also be used as another target line.

💥Using the example of the chart image above, we can see a volume price movement that forms a symmetric triangle. Some parts of the price fall off the lower boundary of the triangle, but if we observe it carefully, we can see that the closing price can move back into the pattern, so we can still consider this as a symmetric triangle pattern.

Reversal Patterns ( Saucer )

2022-11-10T12:54:24Z

💥The Saucer pattern is a bullish trend reversal pattern that is characterized by a gentle and rounded bottom formation on a chart. It is also known as the "rounded bottom" pattern. The pattern indicates a shift in market sentiment from bearish to bullish.

💥The saucer pattern consists of a downward trend followed by a period of consolidation, and then an upward trend. The consolidation period forms the rounded bottom of the saucer. During this time, trading volume is typically low as traders wait for a clear indication of market direction.

💥Once the saucer pattern is complete, the price typically experiences a strong bullish breakout. This breakout is often accompanied by high trading volume, which confirms the bullish trend reversal. The saucer pattern can be seen on any time frame, but it is more reliable on longer-term charts.

💥It is important to note that the saucer pattern is not always a perfect semicircle, and the length of the pattern can vary. Additionally, it is always recommended to use other technical indicators and analysis methods in conjunction with pattern recognition to make trading decisions.

💥Let's move on to the next saucer pattern. How can you recognize this pattern? Think of a coffee cup saucer (in fact, a saucer refers to a soup dish that is deeper than a normal dish, but not so deep that it becomes a bowl). So, what's the connection? There's no direct correlation, but this pattern resembles a coffee cup saucer.

💥Take a look at the picture above and imagine a coffee cup saucer placed upside down. The left side of the saucer represents an upward price movement, but at a decreasing rate. The bottom of the plate is flat, which means the price movement during this period will look like sideways. The right-hand side of the saucer shows a declining price curve, indicating a pattern to change the trend from an uptrend to a downtrend. Let me explain it more clearly.

💥You can see that the price has climbed up over time before entering a period of decreasing rate movement to the sideways, and during this period, the number of volumes traded has not confirmed the upward movement. The trading volume will gradually decrease, which is a bad signal. When the price enters a declining period, it appears that there have been many sell-offs, which can be seen from the increasing trading volume while the price is dropping.

💥Now, let's imagine the saucer placed face up to support a coffee cup. Its shape is curved, as seen in the picture above. On the left-hand side, the trading volume will adjust down, and the number of volumes traded will gradually decrease accordingly because traders begin to see that the price drop is relatively low. When they sell, they may have to buy at a higher price than before. As for the bottom of the plate, buying pressure starts to come in, and the price rebounds somewhat noticeably.

💥After that, there is a short-term weakening due to taking profits (take profit) because traders want to stock up again before chasing the price to move upwards. The price moves up with the confirmation of an increasing trading volume and eventually breaks free from the sideways to continue moving in an uptrend. Thus, the uptrend saucer is a pattern that occurs during a trend shift from a downtrend to an uptrend.

Reversal Patterns (Triple Tops & Triple Bottoms)

2022-11-07T16:14:42Z

💥Triple Tops and Triple Bottoms are reversal patterns that appear on price charts. They occur when the price of an asset creates three consecutive peaks or troughs at approximately the same level. Triple tops occur during an uptrend, indicating a possible trend reversal, while triple bottoms occur during a downtrend, signaling a potential shift in trend direction.

💥In a triple top pattern, the first peak represents a resistance level that the price is unable to break through, causing it to decline to a support level. The second peak shows a renewed attempt to break through the resistance level but is again rejected, leading to another decline to the support level. Finally, the third peak fails to surpass the resistance level, and the price declines below the support level, signaling a potential downtrend.

💥In a triple bottom pattern, the first trough represents a support level that the price cannot break through, causing it to rise to a resistance level. The second trough shows a renewed attempt to break through the support level, but it is again rejected, leading to another rise to the resistance level. Finally, the third trough surpasses the support level, and the price rises above the resistance level, signaling a potential uptrend.

💥Traders usually confirm the pattern by looking at the trading volumes during each peak or trough. Higher trading volumes at the peaks and troughs indicate stronger support and resistance levels. The neckline, which connects the peaks or troughs, is also essential. A break below the neckline in a triple top pattern or above the neckline in a triple bottom pattern confirms the pattern, and traders may initiate trades based on the anticipated trend reversal.

💥Let's discuss triple tops first. Broadly speaking, it refers to when the volume price tries to break through a horizontal resistance but fails to do so, resulting in a subsequent correction. It may be difficult to understand this concept just by listening to it. Therefore, let's try to delve deeper and look at some visuals.

💥In the figure above, let's say the price is moving up and reaches the top 1. Then, there is a sell-off that causes a decline to the bottom 1. However, the trading volume during the bottom 1 is still not significant because everyone thinks it is a minor correction in a major uptrend. They want to buy, and the price continues to rise until it reaches close to top 1 again. Traders have confidence that it will continue to move in an uptrend, and the trading volume during this period is quite large.

💥As mentioned above regarding the meaning of resistance, the price moved down from the second top and continued to flow down to the second bottom, which is a support line. Traders' expectations remain that there may be a rebound. Therefore, during the second bottom line, the volumes appearing are less than during recent uptrends because there is still a concern that after selling, it cannot be repurchased (bought back at a higher price than it was sold). However, when it comes to actually moving up to the third top, some traders are starting to worry because it has failed to pass through it twice before. Therefore, they do not dare to buy to pursue. The number of volumes in this period is seldom different from the last period, so when it reaches the third top, it is quite brittle. A downward adjustment is likely to occur. It can be seen that the price attempted to break the horizontal resistance three times (triple) but still failed to pass through.

💥The completeness of the form takes place when the price has adjusted down until breaking through the horizontal support line that used to support the abyss point 1 and bottom point 2 down. Here, the level is seen as a neckline, similar to the case of head & shoulders, but in fact, they call it the base line. The amount of volume in this period will increase a lot as a result of the profit that will occur after.

💥The question is, will you stop playing at all? The answer is no! But you will wait to set up at a level away from the neckline down equal to or close to the distance measured from the top 2 to the neckline. In principle, there may be some rebound, but that's just a bounce, not a shift. Continually rising playing in this period could be a bit of play and wait to take profits at the level before or close to the neckline. The number of volumes sold out was enormous. You can see that at the beginning, the volume movement is still an uptrend, but later the trend has become a downtrend, and thus it is one of the reversal patterns.

💥If you still don't understand, I encourage you to study the concept again and again. It's not as difficult as you may think! For those who understand, let's move on to discussing triple bottoms. Firstly, we need to understand what triple bottoms are used for. Can you guess? Some traders may have already figured it out. It is a pattern that increases the likelihood of a downtrend turning into an uptrend.

💥Initially, the price trend was still in a downtrend. When the price hit bottom 1 in the chart, buying pressure pushed the price back up. Buyers saw the price at bottom 1 as cheap. However, when the price reached top 1, some people decided to sell and take profit because the overall trend was still in a downtrend. This selling pressure caused the price to fall back down to the base, as defined by the support line mentioned earlier.

💥The price then rebounded from bottom 2 and continued to rise until it reached peak 2. However, it was hit again and began to fall once more until it reached bottom 3. This time, there should be more buying interest as the price had fallen twice before but did not go lower than the previous two bottoms (bottom 1 and bottom 2). Buyers had to fight to push the price back up.

💥If the price can break through the base line resistance again, it will gain a lot of reinforcement. The number of traded volumes will increase, confirming that this rise is strong enough. Many are starting to see that this is a pattern of triple bottoms, although there may be some downturn from short-term take profit. The distance before the neckline compared to the distance between Bottom 1 and Bottom 2 is an adaptation in preparation for an uptrend in the form of triple tops or triple bottoms. When forming, it can be seen that volume and prices move sideways, as shown in the figure depicting triple tops in real volumes.