Many traders enter the market having discerned in the price "Rorschach blots" figures and patterns that correspond well to their subjective opinion and wishes for the market movement, but at the same time, completely missing key points and details.
1) Pattern#cupandhandle "Cup with Handle" in Price Movement#Dogecoin ? No, a false figure!
NB! Formation of the true figure "Cup with handle"must necessarily be preceded by an upward trend. The reliability of the formed figure is also checked by the time frame. The older it is (H4, D1, W1), the more likely it is that the cup is true.
2) The Descending Triangle pattern and another example on the price chart$DOGE
It would seem that upon completion of the figure, the price should have fallen even lower, at least by the distance of the figure's base, but something went wrong. Pay attention to the indicator#RSI , it shows a clear divergence relative to the slope of the triangle.
Only a combination of signals and factors can serve as confirmation of a trend or figure. Be vigilant and trade wisely!
Good luck 😉👍
