Bearish Patterns Annotated:
Double Top: A classic bearish reversal pattern resembling an "M" shape. It occurs when price hits resistance twice at similar levels (here, approximately $3,437 and $3,448 in July and August) and fails to break higher. This signals potential exhaustion of buyers and a shift to sellers.
Evening Star: A three-candle bearish reversal pattern marked near the recent high. It typically consists of a large green candle (up day), followed by a small-bodied candle (indecision), and then a large red candle closing below the midpoint of the first candle. This suggests bulls are losing control.
Engulf Candle (Bearish Engulfing): A red candle that completely "engulfs" the body of the prior green candle, indicating strong selling pressure overriding previous buying. It's marked near the top, reinforcing the reversal theme.
Opportunity: - As per chart it can short 3380-3350 with stop loss 3400 above for the targets of double bottom pattern 3260 and 3160.
Double Top: A classic bearish reversal pattern resembling an "M" shape. It occurs when price hits resistance twice at similar levels (here, approximately $3,437 and $3,448 in July and August) and fails to break higher. This signals potential exhaustion of buyers and a shift to sellers.
Evening Star: A three-candle bearish reversal pattern marked near the recent high. It typically consists of a large green candle (up day), followed by a small-bodied candle (indecision), and then a large red candle closing below the midpoint of the first candle. This suggests bulls are losing control.
Engulf Candle (Bearish Engulfing): A red candle that completely "engulfs" the body of the prior green candle, indicating strong selling pressure overriding previous buying. It's marked near the top, reinforcing the reversal theme.
Opportunity: - As per chart it can short 3380-3350 with stop loss 3400 above for the targets of double bottom pattern 3260 and 3160.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.