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

avatarSondagar MitDec 26, 2021 · 3 years ago3 answers

I'm interested in learning more about the 3 bar reversal pattern in the cryptocurrency market. Can you provide some real-life examples of successful trades that have been made using this pattern? I would like to understand how this pattern can be applied in different cryptocurrency trading scenarios and what kind of results traders have achieved. Please include details such as the specific cryptocurrencies involved, the timeframes used, and any other relevant information that can help me better understand the effectiveness of the 3 bar reversal pattern in the cryptocurrency market.

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

3 answers

  • avatarDec 26, 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.
  • avatarDec 26, 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.
  • avatarDec 26, 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.