Form Structure Left Side of the Cup: The price is in a downward trend, starting to form a downward arc. The characteristic of this stage is that the selling pressure gradually decreases, as the number of sellers willing to sell at lower prices diminishes with the continuous decline in price. Bottom: After the price drops to a certain extent, it begins to stabilize, forming the bottom of the cup. This bottom may be a relatively flat area or a small range of fluctuations, indicating that the market is seeking bottom support. Right Side: The price begins to rise slowly from the bottom, forming the right side of the cup. This rising process is usually gentle, accompanied by a certain buying force entering the market, but the overall trend is still not very clear. Handle: After the price rises to a certain extent, it experiences a slight pullback, forming the handle. The pullback of the handle is usually small, generally not exceeding one-third of the height of the cup. The shape of the handle can be a downward-sloping straight line or a small arc. 2. Characteristics of Trading Volume In the cup part, during the downward process on the left side of the cup, the trading volume may be relatively large, reflecting the market's selling pressure. As the price approaches the bottom of the cup, trading volume gradually decreases, indicating that the selling pressure is weakening and the market is becoming calmer. In the rising process on the right side of the cup, trading volume begins to expand gently, showing that buying pressure is gradually entering the market, pushing prices up. Handle: When the price forms the handle pullback, trading volume usually decreases further, which is a key feature. If trading volume does not decrease significantly during the handle pullback, the reliability of the downward cup handle pattern will be questioned. When the price breaks through the resistance level of the handle, trading volume needs to expand significantly, which is an important signal to confirm the establishment of the downward cup handle pattern, indicating that the buying strength is strong enough to push the price further down.
The diamond rising pattern is a continuation pattern formed by the combination of a spreading triangle and a symmetric triangle, named for its diamond-like shape. It usually appears in an upward trend, indicating that after a period of consolidation, the market will continue the previous upward trend. Pattern Characteristics Spreading Triangle Stage: The left half of the diamond is a spreading triangle. Price fluctuations gradually widen, with higher highs and lower lows, forming an outward spreading shape. In this stage, market sentiment is relatively chaotic, with significant divergence between bulls and bears, and trading volume generally increases as price fluctuations expand. Symmetric Triangle Stage: The right half of the diamond is a symmetric triangle. As the range of price fluctuations gradually narrows, higher highs gradually decrease, and lower lows gradually increase, forming a converging triangle shape. In this stage, the forces of bulls and bears gradually tend to balance, market uncertainty gradually decreases, and trading volume tends to decrease as the range of price fluctuations narrows. Neckline: A line connecting the two low points of the spreading triangle and the two high points of the symmetric triangle, forming a neckline resembling the outline of a diamond. When the price breaks upward through the neckline, the diamond rising pattern is completed, and the market will likely continue the upward trend. $BTC $ETH #2025加密趋势预测 #BTC上攻11万?
The head and shoulders bottom is a typical technical analysis pattern, which is usually regarded as an important signal of market trend reversal.
Pattern structure Left shoulder: In a downward trend, the price falls to a certain level and then rebounds, and then falls again to form a left shoulder. The volume of the left shoulder is relatively small, indicating that the market is still under heavy selling pressure at this stage, but some buying has begun to intervene. Head: After the price falls to the left shoulder, it continues to bottom out, forming a lower low than the left shoulder, and then rebounds sharply. The volume of the head is usually higher than that of the left shoulder, which shows that more buying has begun to enter the market and the supply and demand relationship in the market is changing. Right shoulder: After the price rebounds from the head, it falls again, but the low point of this decline is higher than the low point of the head, and then it starts to rebound. The volume of the right shoulder is generally smaller than that of the head, but it may be slightly larger or similar to that of the left shoulder, indicating that the selling pressure in the market is gradually easing and the bullish force is gradually increasing. Neckline: Connect the high points after the rebound of the left shoulder and the right shoulder to form a straight line, which is the neckline. The neckline is the key reference line of the head and shoulders bottom pattern. Before the price breaks through the neckline, the head and shoulders bottom pattern has not been fully established. #比特币市场波动观察 #BTC走势分析 #交易形态
Wolfe Waves is a technical analysis tool based on price fluctuations proposed by Bill Wolfe. Basic Structure Wave 1: The initial rebound or decline in market trends, retreating after reaching a peak in an uptrend and rebounding after hitting a low in a downtrend, marking the starting point of the pattern. Wave 2: The correction to Wave 1, forming a low point in an uptrend by retreating from the high of Wave 1, and forming a high point in a downtrend by rebounding from the low of Wave 1. Wave 3: The main fluctuation of the market, forming a peak higher than Wave 1 in an uptrend and a low point lower than Wave 1 in a downtrend, reflecting the continuation of the market trend. Wave 4: As the corrective wave of Wave 3, its low point is below the low of Wave 2 in an uptrend and its high point is above the high of Wave 2 in a downtrend. Wave 5: The final fluctuation of the market, with strong directionality, breaking through the trend line formed by Wave 1 and Wave 3 in an uptrend, and falling below that trend line in a downtrend, indicating a price reversal.
Application Points Confirming Validity: Look for divergences between price and oscillators such as the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD); the appearance of divergence supports the potential for reversal predicted by the Wolfe Wave pattern. If there is no divergence, the identified pattern may be invalid. 1. Combine with Other Tools: Due to the complexity and uncertainty of the market, Wolfe Waves are not absolutely accurate and should be combined with other technical analysis tools such as trend lines, volume, and fundamental analysis to comprehensively assess market trends and develop more reasonable trading strategies. #比特币市场波动观察 #加密市场反弹
The descending triangle flag is a chart pattern in technical analysis. Below are its characteristics and trading strategies:
Pattern Characteristics
• Similar to a triangle flag: The descending triangle flag resembles a flag on a pole, beginning with a steep decline in price accompanied by high trading volume, followed by a brief period of consolidation with reduced volume, forming a triangular flag surface.
• Flag surface shape: The flag surface consists of sloping sides that gradually lower from the high points and a horizontal bottom edge, with high points decreasing in succession and low points roughly at the same level.
• Volume changes: During the formation of the flagpole, trading volume is high, and during the consolidation phase, volume continues to shrink, while volume will increase again when the trend resumes its decline.
Trading Strategies
• Shorting timing: When the stock price breaks below the lower trendline of the triangle flag surface, it signals an opportunity to short.
• Target price level: After the descending triangle flag formation is complete, the theoretical target price decline is approximately equal to the length of the flagpole.
Market Implications
• Seller advantage: Reflects that the market's selling power is gradually gaining an advantage, with heavy selling pressure above and increasing selling strength.
• Change in psychological expectations: Investors' confidence in rising stock prices weakens, leading them to sell, further pushing down stock prices.
• Accelerated decline: When the stock price breaks below the support level of the bottom edge, it can easily trigger stop-loss orders and panic selling, leading to an accelerated decline.