This classic trading pattern signaled that Bitcoin price had hit a top
Cointelegraph
Published Jul 24, 2021 08:05PM ET
Updated Jul 24, 2021 09:40PM ET
Traders tend to focus too much on timing the right entry to a trade, but very few focus on developing a strategy for exiting positions. If one sells too early, sizable gains are left on the table and if the position is held for too long, the markets quickly snatch back the profits. Therefore, it is necessary to identify and close a trade as soon as the trend starts to reverse.
One classical setup that is considered reliable in spotting a trend reversal is the head-and-shoulders (H&S) pattern. On the longer timeframes, the H&S pattern does not form often, but when it does, traders should take note and act accordingly.
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Written By: Cointelegraph
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