Analysis of Downward Patterns, Identifying Downward Patterns Can Help Us Avoid Pitfalls!
The video below disassembles classic downward structures
1: Double Top + Bearish Engulfing: After two tops form, a bearish engulfing candle appears, which is a trend reversal signal, indicating that the downward trend is about to start.
2: Flag Formation: A brief consolidation during a downward trend, after which the downtrend is likely to continue; do not be deceived by false rebounds.
3: Key Areas (Support/Resistance): When the price breaks through key support, the downward trend is confirmed; timely stop-loss is necessary.
Understanding these patterns can help you anticipate risks in trading, but investment carries risks and should be assessed with multiple signals.~
