📉 Strategy "M-top" or Double Top: How do we know when the price starts to fall?
Hello! If you're new to trading, you don't need complicated indicators to understand when "the fuel runs out" of a rise. One of the simplest and most powerful signals is the Double Top.
✨️What is Double Top?
Imagine a mountain with two nearly equal peaks. It looks just like the letter M.
How it works (The story behind the chart):
* First Peak: The price rises strongly, but hits a "wall" (a resistance) and drops slightly.
* Second Attempt: Buyers gain confidence and push the price up again, trying to break that wall.
* Failure: The price reaches about the same level as the first time, but lacks the strength to go higher. This is where the "Bears" (sellers) start to sell massively.
* Confirmation: When the price drops below the "valley" between the two peaks, it's a clear signal that the direction has changed.
✒️Why is it useful for beginners?
* It's visual: It's easy to observe with the naked eye.
* Safety: It tells you that the price has tried to rise twice and has failed.
⚠️ REMEMBER: Before entering any trade, check the chart independently and analyze the indicators. Don't rely solely on a single geometric figure; do your own analysis and make responsible decisions.