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Double Top or Bottom

USD/CHF: A Potential Long Trade Setup On The HorizonA potential double bottom that has formed. To see if this is true we need to wait for a break above the neckline to have a true breakout entry. There is also a daily divergence with the RSI, which is another confluence factor for the long bias with a nice rejection of this daily support level. Aggressive traders could enter at the break of the trendline (Falling Wedge Pattern), but this comes at a big risk since there is no higher highs or higher lows formed at present. For a more secure entry, once price breaks above the neckline, pullback or continuation traders can look for additional entries. However, as usual, it comes with a risk: The trade could push on without you. Trade safe and remember, this is only an idea and not financial advise. Always remember to use proper risk management.
Long
by danielsquiwin
Will META's bullish case continue with these headwinds? NASDAQ:META Meta's Resilience: A Bullish Case Amidst Market Turmoil While many tech giants face headwinds, Meta has been a standout performer. Despite the looming threat of a recession, I remain optimistic about the company's long-term prospects. Meta's AI-driven ad platform has proven to be remarkably sticky, even in challenging economic conditions. As businesses of all sizes continue to rely on targeted advertising, Meta's revenue stream is well-positioned for continued growth. Technically, Meta's chart is starting to exhibit signs of a potential pullback. A rising wedge formation suggests that a short-term correction may be on the horizon. However, I believe that strong support levels at $443, $412, and $384 should provide ample opportunity for investors to accumulate shares at attractive prices. If the market takes a significant downturn, I'm confident that Meta's underlying fundamentals will support a recovery. In such a scenario, I would view a dip below $275 as a compelling buying opportunity. Disclaimer: This is not financial advice. Always consult with a financial advisor before making investment decisions.
NASDAQ:METAShort
by Average_Joe_Options
2
DXY- Dive under 100?In my previous DXY analysis I said that, although the index reversed from the beginning of the year support, bulls should not get too excited as long as the index is under 102.30 zone. In the next days, the index resumed its fall and now is trading back towards recent lows. Today's NFP data could bring clarification and if the index falls below the recent lows, 99.50 is exposed. For a bullish scenario, we need a reversal from this zone which could also be the beginning of a double-bottom pattern.
TVC:DXY
by Mihai_Iacob
Last low for ATOM? Long time no see, right? I am here again with analysis for ATOMUSDT. Seems that it reached the end of the downtrend as double bottom shows up based on H4. Also, when checking H1, I noticed that there's an aggressive green candle showed up after touching the zone I created which we can call termination show. For testing, if my analysis is correct - I placed order using the paper trading betting that the price will go up. Also, if this is correct - we should expect that the candles will go up and break the neckline of the double bottom that we encounter that concludes that the market will go now in an uptrend. Note: This is not a signal - this is just an application based on the analysis that I learned and testing it out. Thanks to #thetradingchannel. Share your ideas and suggestion by commenting down below to help me improve my trading analysis. Thank you!
Long
by jefersonroda
2
SPY recent rally failed to make new highsLooking back at the last two major rallies we see that the latest one has not broken above to new highs. Raises concerns of longer term rallies less likely to happen SPY is forming double top reversal pattern Longer term future rallies called into question More defensive sectors are experiencing rallies over the past year (XLU for example) Defensive sector long term rallies shows rotational shift from risk assets (tech) to safer assets (utilities, healthcare, gold) Seeing signs of late cycle investing 2025 could be a rough year for SPY and especially tech Bullish purchases should be done with caution
AMEX:SPYShort
by ratchet-mint
Gold Eyes 2519 Resistance with Potential $14 UpsideAhead of significant risk events for XAU/USD, including the upcoming ADP Employment Change data, gold prices have moved higher in overnight trading. This rise reflects the market's cautious positioning before the release of key U.S. economic indicators. Gold prices have successfully breached the double bottom pattern's neckline at $2496, a critical technical level. Currently, prices are testing the $2506 resistance level, which coincides with the highs from September 2-3. A break above $2506 could open the door to the next key resistance at $2519, marking the projected completion of the double bottom pattern—a classic bullish reversal signal. However, if the price fails to break through $2506 and gets rejected, traders should watch for a potential retest of the $2496 support level. This level, previously a resistance, has now flipped to support, creating a pivotal zone for short-term price action. The trend will remain upwards above $2490. This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
THINKMARKETS:XAUUSDLong
by ThinkMarkets
BITCOIN → Manipulative ShortSqueeze. When to prepare for growth?BINANCE:BTCUSD is not falling below 50K, which is expected by many. The flagship continues to consolidate ( which has been going on for half a year now ) and accumulate potential at the expense of some traders or another, mostly at the expense of sellers. Why am I being positive? . In the second half of August, BTC tried to move into the realization phase and headed towards 70K, but ran into a block of limit orders ( resistance ) at 65K - MM is not ready to let the price go. Having formed a double top, the price returns to the range confirming the fact of false breakdown and liquidation, as a consequence of such actions MM has an interest - liquidity from below ( for this reason I am waiting for initial decline with subsequent growth ). The chart above shows the key zones and possible scenarios to pay attention to when forming your strategy There is no constructive reason for the formed fall and therefore this movement can be considered purely manipulative, the purpose of which may be to buy up the asset through panic selling as well as prolonged accumulation before realization. Resistance levels: 59600, 60500 Support levels: 58700, 57900, 57736, 56078 . The market is still strong but in a range. Any attempts to sell-off are aggressively bought out by whales ( liquidity withdrawal ). On W1-M1 a stop is forming after a strong rally, which is considered as a controlled consolidation within the bull cycle, which is far from ending. The high probability scenario of that technical nuance is an upward distribution of accumulation. Rate, share your opinion and questions, let's discuss what's going on with ★ BINANCE:BTCUSD ;) Regards R. Linda!
Long
by RLinda
42
SPXS- Bear is the new Bull?**Disclaimer**: This analysis provides an overview of the historical performance of SPXS and highlights potential trading strategies based on observed patterns and volatility. However, this is not financial advice, and past performance is not indicative of future results. Traders should consider broader market conditions and any upcoming economic events when making decisions. ### Technicals - Seasonality - RSI Support & Resistance ### **Bearish Seasonality in August and September** August and September have historically been bearish months for the broader market, which tends to be bullish for SPXS, given that it is an inverse ETF of the S&P 500. This inverse relationship provides opportunities for traders looking to capitalize on negative market sentiment during this period. The upcoming Federal Reserve meetings on **September 17-18** and **September 19-20** may significantly impact market movements. The chart currently shows a **double bottom** pattern, a bullish reversal signal, which could indicate further upside potential for SPXS if confirmed by the market’s reaction to the Fed's decisions. Though it is likely that they will lower rates, which is bullish for the market, and bearish for SPXS. --- ### **Key Statistics for August and September** - **Returns**: SPXS tends to perform well during market downturns, particularly in August and September, as volatility spikes. The maximum percentage increase in these months has reached substantial levels. - **Max % Up**: Historically, SPXS has seen maximum gains of **up to ~30% in September**, making it an attractive vehicle for traders expecting bearish trends in the broader market. - **Volatility**: SPXS’s volatility remains elevated in August and September, allowing for significant swings in both directions. Traders should be cautious but could benefit from these sharp movements, especially when combined with proper risk management. --- ### **Probability of a Breakout** The chart displays a clear **double bottom pattern**, a common bullish reversal indicator. The probability of a breakout depends on multiple factors, including broader market sentiment, technical resistance levels, and upcoming economic news such as the Federal Reserve’s meetings. Historically, double bottom patterns have a success rate of around **70%**, meaning that when the price breaks above the resistance level, there is a strong chance of an upward move. Given the market conditions, the bearish seasonality of August and September further supports the potential for a bullish breakout in SPXS. --- ### **Setting Stop Losses** Risk management is crucial when trading SPXS due to its volatility and leveraged nature. Here are some ways to set effective stop losses: 1. **Tighter Stop Loss**: - For more conservative traders, place a stop loss just below **$7.297**, which is the pivot level. This may reduce risk but could also lead to getting stopped out in case of minor volatility. 3. **ATR-Based Stop Loss**: - Using the **Average True Range (ATR)** as a volatility-based indicator, you could set a dynamic stop loss. If the ATR is **0.50**, for example, place your stop **0.50 to 1.0 points** below the breakout level. --- ### **Risk Management: Kelly Criterion** Given that the average return in September is **2.23%** and the positive probability (Pos%) is **47%**, managing risk with a structured approach is essential. The **Kelly Criterion** helps determine the optimal position size based on probabilities and expected returns, balancing growth while minimizing risk. The **Kelly Criterion formula** is: \ Where: - \( f^* \) is the fraction of capital to allocate to the trade. - \( b \) is the odds of winning, which can be estimated by the average return (2.23% or 0.0223). - \( p \) is the probability of winning (47% or 0.47). - \( q \) is the probability of losing (1 - p = 0.53). **Applying the Kelly Criterion**: 1. Estimate the odds of winning: In this case, the average return for September is 2.23%, so: \ 2. Winning probability: \ 3. Losing probability: \ Now, applying the Kelly formula: \ Since the result is negative, the Kelly Criterion suggests **not placing a trade** in this scenario, as the negative expectation would not justify the risk. However, many traders use a **fraction of the Kelly Criterion** to limit exposure to volatility. A **half-Kelly** strategy, for example, would mean investing around **2-5%** of capital, adjusting for risk tolerance. --- ### **Conclusion** For those looking to take advantage of bearish trends in the broader market, August and September have historically provided favorable conditions for SPXS. The upcoming Federal Reserve meetings may act as key catalysts for further upside, particularly if the market reacts negatively to any interest rate decisions, potentially confirming the double bottom pattern. However, given the high volatility associated with this period, it is critical to manage risk carefully and stay updated on macroeconomic developments.
AMEX:SPXS
by livingdracula
Alikze »» SUI | Daily FVG gap🔍 Technical analysis: Daily FVG gap - According to the analysis presented in the previous post, after creating demand in the green box area, it grew to the supply area. - Currently, according to the structure formed in the supply area, a twin roof with a shorter roof is observed. - But in the 8H time frame, it is moving in a descending channel. Demand has also been met at the bottom of the channel. - Therefore, according to the FVG gap in the 1D time frame, if the selling pressure continues, it can make a correction to the green box area and retest it to fill the gap. 💎 Alternative scenario: also, if he can break the middle of the channel upwards, he can retest the supply area again. »»»«««»»»«««»»»««« Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support. Best Regards,❤️ Alikze. »»»«««»»»«««»»»««« BINANCE:SUIUSDT
Short
by alikze
Double Bottom LongGood day traders, i hope you have all been well. Lets get into it. This is a follow up on the NZDUSD formation i uploaded last time, the Double Bottom. We can all agree that the setup played out well, price reached the Resistance(0.62691-0.62970) and i believe price will or is heading back down to retest the neckline of the double bottom before it continues upward and i have identified the possible neckline resistance that was broken and will be retested as new support(0.61335-0.61266). remember chart patterns do work only if you apply them properly and that is at significant Support or Resistance. All the best
Long
by madanhileeroy
Gold Analysis==>>Adam & Adam Double Top PatternGold failed to form a new All-Time High (ATH) at the beginning of the week. Gold has successfully formed the Adam & Adam Double Top Pattern in the Potential Reversal Zone (PRZ)($2,539-$2,515) and breaking the Support lines . Credit terms of Adam & Adam Double Top Pattern: 🔸The Adam & Adam Double Top Pattern has the most credibility among the Double Top Patterns after the Eve & Eve Double Top Pattern . 🔸 Regular Divergence(RD-) between two Tops. 🔸The slope of the second top is higher than the slope of the first top towards the Neckline . I expect Gold to decline to at least the target of the double top pattern and attack the lower support line . Gold Analyze ( XAUUSD ), 1-hour time frame ⏰. Do not forget to put Stop loss for your positions (For every position you want to open). Please follow your strategy; this is just my idea, and I will gladly see your ideas in this post. Please do not forget the ✅' like '✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
OANDA:XAUUSDShort
by pejman_zwin
3