Mastering these patterns can level up your trading game đŻ
Hereâs a quick guide youâll want to save đ
đ» 1. Double Top â Bearish Reversal
Looks like an âMâ. Price touches the same high twice, then falls.
â Sell: When price breaks below the neckline
đŻ Target: Height from top to neckline
đ Stop Loss: Just above the second top
đ» 2. Head & Shoulders â Bearish Signal
Middle peak is the tallest, with two smaller ones on the sides.
â Sell: After neckline breaks
đŻ Target: Height from head to neckline
đ Stop Loss: Above last shoulder
đ» 3. Rising Wedge â Bearish Setup
Price rises in a tight range, then drops fast.
â Sell: On breakdown below the wedge
đŻ Target: Where the wedge started
đ Stop Loss: Just above wedge top
đș 4. Double Bottom â Bullish Reversal
Shaped like a âWâ. Price hits same low twice, then rises.
â Buy: When price breaks the neckline
đŻ Target: Height from bottom to neckline
đ Stop Loss: Below second bottom
đș 5. Inverse Head & Shoulders â Bullish Signal
Middle dip is deeper, with two smaller dips on the sides.
â Buy: On breakout above neckline
đŻ Target: Height from head to neckline
đ Stop Loss: Below last dip
đș 6. Falling Wedge â Bullish Setup
Price moves down in a narrow shape, then pops up.
â Buy: When it breaks above the wedge
đŻ Target: Start of the wedge
đ Stop Loss: Below wedge bottom
đĄ Quick Tip:
Always confirm with RSI, Volume, or Moving Averages before entering a trade.
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đ Chart image at the bottom!