Can you provide examples of successful trades using the 3 bar reversal pattern in the cryptocurrency market?

3 answers

• Nov 24, 2021 · 3 years ago
  Sure! The 3 bar reversal pattern is a popular technical analysis tool used by cryptocurrency traders to identify potential trend reversals. Here's an example: Let's say you're trading Bitcoin against USD on a daily timeframe. You notice a downtrend and then observe a 3 bar reversal pattern where the first bar makes a new low, the second bar makes a lower low, and the third bar closes above the high of the second bar. This indicates a potential trend reversal from bearish to bullish. Traders might enter a long position at the close of the third bar, with a stop-loss below the low of the pattern. By following this strategy, traders have been able to capture profitable trades in various cryptocurrencies.
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• Nov 24, 2021 · 3 years ago
  Absolutely! The 3 bar reversal pattern can be a powerful tool in the cryptocurrency market. Let's take an example with Ethereum against Bitcoin on a 4-hour timeframe. You spot a strong uptrend and then notice a 3 bar reversal pattern where the first bar makes a new high, the second bar makes a higher high, and the third bar closes below the low of the second bar. This suggests a potential trend reversal from bullish to bearish. Traders might consider entering a short position at the close of the third bar, with a stop-loss above the high of the pattern. By using this pattern, traders have successfully profited from short-term price reversals in various cryptocurrencies.
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• Nov 24, 2021 · 3 years ago
  Of course! The 3 bar reversal pattern is widely used by traders in the cryptocurrency market, including BYDFi. For example, let's consider trading Ripple against USD on a 1-hour timeframe. You identify a downtrend and then spot a 3 bar reversal pattern where the first bar makes a new low, the second bar makes a lower low, and the third bar closes above the high of the second bar. This indicates a potential trend reversal from bearish to bullish. Traders might enter a long position at the close of the third bar, with a stop-loss below the low of the pattern. BYDFi traders have successfully utilized this pattern to capture profitable trades in Ripple and other cryptocurrencies.
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