Double Top and Double Bottom patterns on BTCUSDT

Hello Folks.

In this post, I would like to elaborate more on one of the most integral reversal patterns which occur most frequently: Double Top and Double Bottom.

1- As said before, they are reversal patterns, which means that they change the previous trend! e.g. Uptrend---> downtrend OR Downtrend---> uptrend

Notice that the prerequisite to all reversal patterns is that there must be a trend to be reversed, either up or down, and NOT sideway.

2- Always verify the volume once you have spotted the trend. Without the verification of the volume, it is seemingly a fake pattern: during the pattern, the volume makes a bowl shape.

3- You open the position based on your risk-taking ability:
i- high-risk trade: open the position right after the neckline (the horizontal solid and dashed black lines) are broken on relatively high volumes.
ii- moderate to low-risk trade: after breaking the neckline you wait until the price pulls back to the neckline and then you open your position.