Analyzing XLMUSDT using the double bottom Strategies

Hello guys, I welcome you all once again to my blog. Today I want to take us again on a tour of the piar of XLMUSDT which has formed a complete double bottom pattern.

One of the most traded patterns in the crypto market is the double bottom. You don't need any technical analysis on a list of trade once you are able to identify this pattern correctly.

I have always emphasised that traders should always try to learn and identify various pattern in the market because the market works based on historical movement and most patterns are repeated with time.

From time immemorial, it has become a custom that any time the chart forms a double bottom, and the neckline of the pattern is broken then the market is bound to experience an uptrend movement.

From the chart of XLMUSDT on 1W timeframe, we can see a perfect double bottom formed and that the neckline of the double bottom has also been broken. We have also seen a movement upward and a retest about to take place which will help the token to gather more momentum for the upward movement.

Looking at the chart very well, the price is bound to retest and hit the neckline before it can move upward towards the direction of the arrow I have drawn in the chart. This will be the next movement of XLMUSDT if all rules of the market is respected.

For anyone who wished to trade this setup, ensure to see the clear picture of the trend using the higher timeframe and always enter the trade after the retest has taken place so as to maximize your profit and minimize your loses. I have used the 1W timeframe because I want to see the bigger picture of the market.

Using such timeframe for your analysis will help you stay longer in the market because there are many noise associated with smaller timeframe which may make you to go out of the market even before accumulating all the profits needed.

So to enter such a market, you can use a lower timeframe like 30M and then watch the market through the bigger picture of about 1W. This will help you to gain all that the market has to offer at any giving point and time.

Disclaimer: ^{This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your research and consult a financial advisor.}