Reversal Patterns (Triple Tops & Triple Bottoms)


Reversal Patterns (Triple Tops & Triple Bottoms)
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11/7/2022


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Let"s talk about triple tops first. Its broad definition is that the volume price attempts to push past the horizontal resistance but fails to do so. Also resulted in an adjustment in later periods Listening to it may not be clear. Let"s do this. Let"s try to understand further. And see pictures as well.


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In the figure above, let"s say the price is moving up. And has moved to the top 1, and then there was a collapse in sales, causing a decline to the bottom 1, but the number of shares during the bottom 1, is still not much because everyone thinks that It is a minor adjustment in a big trend that still maintains an uptrend. Want to buy and the price is chasing up until close to the top 1, that has just passed With confidence that it will continue to move in an uptrend, the number of volumes that have been battling in this period is quite large.


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However, as mentioned above on the meaning of resistance As a result, the price has moved down from the 2nd top and continued to flow down to the 2nd bottom, which is a support line. Traders" expectation remains that there may be a rebound. Therefore, during the 2nd bottom line the volumes appearing are less than during recent uptrends. Because there is still a concern that after selling it can"t be repurchased (buy it back at a higher price than it sold), but when it comes to actually moving up to the 3rd top, some traders are starting to worry because 2 times ago It has never been able to pass through it. Therefore did 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 3rd top, it is quite brittle. A downward adjustment is likely to occur. Which can be seen that Three attempts of the price (triple) still failed to break. Pass through horizontal resistance.


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 making a profit that will occur after.


Question, will you stop playing at all? The answer is No! But 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 It 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 is one of the reversal patterns.


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if you still don"t understand I ask you to try to study again and again. It"s not as difficult as you think! If you understand, then come and try. Let"s talk about triple bottoms. First of all, we need to know what triple bottoms are for. Or tell us something? Some traders may have already imagined it. That it is a pattern that makes the original trend downtrend more likely to turn into an uptrend, yes! In principle, it"s like this.


Originally, the trend of the price was still a downtrend, that is, when the price weakened to the bottom 1 in the figure, there was a buying force to help. This pushed the price to rebound. Because they see that the price at the bottom 1 is cheap, but when the price reaches the top 1, some people say that they want to sell and take profit first because the big trend is still downtrend. This selling force is the pressure. Price has weakened back down to base According to the definition of support as mentioned above. As a result, the price has rebounded from bottom 2 back up one more time Until reaching the peak 2, it was hit again. It rolls down according to the rules. Until reaching the bottom 3, I would like to come back up again, but this time, it should get more interest in helping to buy Because it has fallen 2 times, it"s not lower than the bottom 1 and the bottom 2, we have to fight!


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If it can break through the base line resistance again, it will gain a lot of reinforcement. The number of volumes traded will increase, confirming that this rise is strong enough. And many are starting to see that this is a pattern of triple bottoms, although there may be some downturn from take profit (short-term take profit). The interval before the neck line compared to the interval Bottom 1 and Bottom 2 Because it 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 prices move sideways, see the figure showing triple tops in real volumes.




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