Sudden Reversal Patterns: The "Password Map" of Market Fluctuations
In the rising and falling tides of the cryptocurrency market, "sudden reversal patterns" are key clues for predicting trend reversals, divided into two scenarios: rising and falling, anchoring the direction for trading decisions:
Rising Reversal: Capturing Bullish Rebound Signals
Guiding Phase: When prices are steadily declining without excessive speculation, a trend line sloping downward at 30 - 45 degrees serves as both a support/resistance level and a "coordinate ruler" for subsequent entry points.
Sudden Phase: With a surge in speculative activity, prices shift from decline to rise, akin to the "charge signal" sounded by market bulls.
Ending Phase: After the price retraces to key support/resistance levels and confirms at least two rebounds, the upward trend will continue, making this a golden opportunity to position for bullish trades. Open long positions after a breakout, with two precise entry points that align with the trend rhythm.
Falling Reversal: Identifying Bearish Pressure Points
Guiding Phase: When prices are steadily rising without excessive speculation, a trend line sloping upward at 30 - 45 degrees serves as a support/resistance function, providing a reference for short entry.
Sudden Phase: Driven by speculation, prices shift from rising to falling, marking the beginning of bearish force release.
Ending Phase: After the price retraces to key levels and validates through at least two rebounds, the downward trend continues, opening short positions after a breakout, with two entry points to help seize bearish market conditions.
Mastering these two types of patterns is like obtaining the "password map" of market fluctuations, allowing for more precise anchoring of trend reversals in complex situations like staking and unlocking impacts, making trading decisions more systematic and navigating through the volatility fog of the cryptocurrency market.
