This post may be interesting and even useful for beginners in trading.
#PATTERN (patterns) in technical analysis are called stable recurring combinations of price, volume, or indicator data. Pattern analysis is based on one of the axioms of technical analysis: "history repeats itself" - it is believed that recurring combinations of data lead to similar outcomes.
Flag - a consolidation model within an uptrend (looks like a parallelogram). It usually lasts from three days to three weeks.
In this case, on the price chart,$DOGE we see a clear bearish flag (#bearflag ), which formed over almost 4 weeks from 13/11 to 08/12/2024.
Divergence - a visual signal of asset overbought. The divergence between the asset price and the indicator value warns of an imminent and rapid decline in quotes. This trend can be timely detected using the #RSI (relative strength index) indicator.
In this case, on the price chart,#Dogecoin we can observe divergence during the period from 13/11 to 08/12/2024.
Also, during this period, a constant decrease in trading volume can be clearly seen in the uptrend, which also indicates the weakness of buyers and a possible imminent trend change.
However, always remember that the best signal to enter the market is a combination of factors. Do not make hasty decisions based on a single signal. Always try to look at the overall picture objectively. In hindsight, any signal will seem obvious to you, and you will find justifications or reasons for it, so act solely thoughtfully and with a cool head!Good luck, friends. Wishing you successful trades and big profits 👌
P.S. If this post generates interest and gets likes - I will write more similar ones 😉
