Trading is learning about the possibilities of price movement. In assets like Bitcoin, where many people are involved in it, the price movement has unexpected outcomes. To be successful in trading, the more patterns you will learn, the more you will generate the profit for you.
Three top
During a trading session, an asset may create three peaks and valleys at the same level. These levels of peak generate great enthusiasm for traders, but they require a careful approach to intervention.
Whenever the tripe top has been formed, it is always possible that the volume of the assets generally decreases with each adjacent peak. For example, from one peak to another, the volume decreases after the price reaches the top and increases when prices reach the bottom.
At that time, chasing the rise was also the most effective strategy, but you should understand that if the price breaks below the support line, which is made by two consecutive lows, it means the triple top structure is complete, and price movement takes a different approach.
Triple bottom
The triple bottom is the complete opposite of the triple top. When the structure is complete, like three bottoms are created, an upward breakthrough is always possible. Like the triple top, you can draw the resistance line on two highs in this structure. In addition, if you have found three bottoms in the asset price, the upward breakout volume is significantly high.
In summary, both structures are important to learn, especially in Bitcoin trading. You’re always more focused if you have found three consecutive lows and highs. You can use this strategy in any time frame and with any assets. Thanks for reading this article.
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