Examining the #DOGECOIN chart in the weekly time frame : we see that the price has been fluctuating in the range of 16 to 35 cents since May 24, 2021, and does not follow a specific trend (trading range). We expect the price to start to rise again this week and Grow and reach its first target at least up to 34 cents! The first condition to reach this target is the failure of the dynamic resistance indicated on the chart.
An interesting scenario could be the formation of the Triple Bottom Pattern pattern, which is completed when the price reaches the level of 34 cents, and with the failure of the neck line, the price can grow up to the specified targets.
Targets are $ 0.34, $ 0.45, $ 0.51, $ 0.57 and $ 0.74, respectively, and $ 1 at the end.
- A triple bottom is a visual pattern that shows the buyers (bulls) taking control of the price action from the sellers (bears).
A triple bottom is generally seen as three roughly equal lows bouncing off support followed by the price action breaching resistance.
What Does a Triple Bottom Tell You ?
The triple bottom chart pattern typically follows a prolonged downtrend where bears are in control of the market. While the first bottom could simply be normal price movement, the second bottom is indicative of the bulls gaining momentum and preparing for a possible reversal. The third bottom indicates that there’s strong support in place and bears may capitulate when the price breaks through resistance levels.
There are a few rules that are commonly used to qualify triple bottoms:
1- There should be an existing downtrend in place before the pattern occurs.
2- The three lows should be roughly equal in price and spaced out from each other. While the price doesn’t have to be exactly equal, it should be reasonably close to the same price, such that a trendline is horizontal.
3- The should drop throughout the pattern in a sign that bears are losing strength, while should increase as the price breaks through the final resistance.
How to Trade a Triple Bottom
The price target for a reversal is typically the distance between the lows and the breakout point added to the breakout point. For example, if the low is $10.00 and the breakout is at $12.00, the price target would be (12 – 10 = 2 + 12 = 14) $14.00. Stop-loss points are usually placed just below the breakout point and/or below the triple bottom lows.
Source : Investopedia
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