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📉 How to recognize the "M" pattern and exploit its signals?

This pattern warns of a price collapse! Here are the steps to deal with it:

🔍 Pattern characteristics:

- Two equal peaks (Top-1 & Top-2): separated by a small peak (resembles the letter M).

- Breakdown of the support level: the strongest signal to start the decline.

🎯 Trading strategy:

1. First entry (Entry at Support):

- Expect a bullish rebound from the support level, but be cautious (a risky signal).

2. Second entry (Entry after Breakdown):

- Enter a sell after breaking the support level with increased trading volume.

3. Stop Loss:

- Place it above Top-2 to avoid losses if the breakout fails.

- Stick to the 10% rule (do not risk more than 10% of your capital).

💡 Important note:

The pattern may give false signals! Ensure:

- High trading volume during the breakout.

- The formation of the pattern after a clear upward trend.

🚨Warning:

The pattern indicates weakness of buyers and the beginning of sellers' dominance, but it requires confirmation of the breakout and strict risk management.

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