In the cryptocurrency world, countless people fight day and night to pursue wealth. Today, I want to share a seemingly simple yet extremely effective trading strategy — 'head and shoulders bottom'. This method has allowed me to achieve nearly perfect win rates in the volatile cryptocurrency market, and perhaps it can become your wealth code too!

The mysterious signals of the head and shoulders bottom

1. The end of the decline

The head and shoulders bottom usually appears after a sharp downward trend, at which point the coin price has already experienced a deep correction. It seems to be a recovery signal from the market after a significant decline, suggesting that the bottom may have formed.

2. Unique triple bottom pattern

The key to this pattern lies in the 'three bottoms': the low points on the left and right sides are close in position, forming the 'left shoulder' and 'right shoulder', while the low point in the middle is lower, constituting the 'head'. This symmetrical structure is like the market repeatedly testing the strength of the bottom support.

3. The breakthrough code of the neck line

The rebound high points from the left shoulder and head connect to form a crucial 'neck line'. When the rebound from the right shoulder strongly breaks through this neck line, it means the head and shoulders bottom pattern is officially established. At this point, market sentiment and trends often experience significant turning points.

4. Subtle changes in volume

Throughout the formation of the head and shoulders bottom, the trading volume typically gradually shrinks, showing the market's hesitation and wait-and-see sentiment. However, when the right shoulder breaks through the neck line, the trading volume must significantly increase, indicating that a large amount of capital is beginning to flow in, providing momentum for the rise.

Winning logic in practice

1. Decisive entry after breaking through the neck line

When the price breaks through the neck line with increased volume, this is a clear signal that the head and shoulders bottom pattern is complete. At this point, the market has completely reversed from the downward trend, and boldly buying is the best choice. Remember, this pattern has a powerful reversal effect; once confirmed, the probability of an upward movement is extremely high.

2. Excellent opportunities for moving average breakthroughs and pullbacks

If the price breaks through the neck line and further breaks through the moving average, and does not fall below the neck line during the confirmation pullback, then this is an excellent opportunity to increase positions. This indicates that the market has fully stabilized, and the upward trend has been further consolidated.

3. Super strong signals from the inclined neck line

If the neck line is inclined upwards, then the reversal effect of the head and shoulders bottom will be even stronger. This pattern indicates that the market has gradually accumulated upward momentum during its struggle at the bottom. Once the price breaks through such a neck line, decisively buy, and continue to increase positions if it does not fall below during pullbacks, you will reap rich rewards.

In the world of cryptocurrency, technical analysis has never been omnipotent, but mastering the right technical patterns will undoubtedly give us an advantage in a complex market. The head and shoulders bottom, this simple yet powerful technical signal, may be the key to standing out in the cryptocurrency market. If you are still struggling with how to seize buying and selling opportunities, why not try this method? It may lead you to the path of financial freedom!

Wishing you, fated ones, to profit from trades every day! At the same time, I kindly ask you to follow and support me! Thank you! 🙏🏻

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