Arc Top of the Escape Bottom

The arc top is a very solid reversal pattern, with high practical value in actual combat. The arc top pattern represents a very gradual change in trend, where trading volume at the top shrinks as the market gradually turns, and when a new price direction takes over, it increases correspondingly. This pattern resembles a crescent-shaped curve, known as the arc top.

Features of the arc top are as follows:

1. The arc top pattern appears in the high price zone near the highest point of the coin price, often slightly lower than the peak.

2. During the process of rising to form the top, the trading volume is huge and irregular. However, after the top is formed, there will be a significant decrease in trading volume. Once the stock price starts to fall, the trading volume begins to increase again.

3. The formation time of the arc top is usually relatively long, generally taking two to four months, or even longer, which also provides investors with ample exit time.

When investors encounter the arc top pattern, how can they find the best selling point?

1. The arc top is a signal of a top-down drop, but it does not have a neckline, so there is no breakout point. Therefore, once investors find that the coin price has risen for a while and then gradually stagnates, followed by a transition from stagnation to decline, that is the first selling point.

2. If it has been determined that the coin price is in a downtrend and the speed of the decline is accelerating, it indicates that the arc top pattern has been confirmed, and this is the best second selling point. #币安八周年