Hello, traders.
ATOM is forming a Bearish Accumulation pattern called a Bear flag. The target is the next important support level.
A bear flag pattern is constructed by a descending trend or bearish trend, followed by a pause in the trend line or consolidation zone. The strong down move is also called the flagpole while the consolidation is also known as the flag.
The bear flag pattern comes after a strong move downwards. The stronger the movement, the bigger the profit potential is.
After we identify the market trend and the characteristics of an excellent bearish flag pattern, we need to wait for confirmation that the trend is about to resume.
There are two basic approaches to enter the market with the bear flag pattern. Aggressive traders will enter at the top of the bearish flag as this will secure a little bit of more significant profits.
Best regards.
Sando and Gustavo.
ATOM is forming a Bearish Accumulation pattern called a Bear flag. The target is the next important support level.
A bear flag pattern is constructed by a descending trend or bearish trend, followed by a pause in the trend line or consolidation zone. The strong down move is also called the flagpole while the consolidation is also known as the flag.
The bear flag pattern comes after a strong move downwards. The stronger the movement, the bigger the profit potential is.
After we identify the market trend and the characteristics of an excellent bearish flag pattern, we need to wait for confirmation that the trend is about to resume.
There are two basic approaches to enter the market with the bear flag pattern. Aggressive traders will enter at the top of the bearish flag as this will secure a little bit of more significant profits.
Best regards.
Sando and Gustavo.